Low-income households are the most affected by adverse events, which have a large impact on their income and ability to spend. These people are exposed to various risks, but often do not have adequate protection against their consequences, making them extremely vulnerable, especially in developing countries. Microinsurance is needed in situations where governments are unable to provide large social benefits or subsidize insurance premiums. From a social point of view, microinsurance could enable the expansion of insurance coverage to previously uninsured people. The term "micro" in microinsurance refers to local rather than small scale coverage, emphasizing the benefits of the insured rather than employment status. Before microinsurance becomes available on a large scale, a number of hurdles need to be overcome. Some barriers are external constraints and delivery barriers, some are shortcomings of existing products, some are related to people's perceptions of insurance in general, and some are related to insurance regulations or lack thereof. The topic is covered in such a way as to indicate the types that such insurance offers and how useful it can be in developing countries where people cannot afford expensive insurance policies. Also explained are the options for determining the price of such an insurance policy, given that they must be available to low-income policyholders. In that part, the risks that insurance companies face in offering such a service will be listed. The final part of the work will be based on the example of India, as a country where there are many people with lower financial status, where many people are engaged in agriculture, and the weather conditions can be very demanding. Such an example best shows how much this type of insurance is needed in such areas of the world.