irregular cash flows of poor households, who have been excluded in the commercial insurance system for a variety of reasons … households. The most prominent forms of microinsurance are life insurance and health insurance (carried out as part of an overall … health care package that links the health insurance to a health facility), which have been designed to be responsive to the …

due to the limited pledgeability of human capital. We show analytically that, consistent with the life insurance data, in … account for the life-cycle variation of life-insurance holdings, financial wealth, earnings, and consumption inequality … insurance. …

with the life insurance data, in equilibrium young households are borrowing constrained and under-insured against human … capital risk. A calibrated version of the model can quantitatively account for the life-cycle variation of life-insurance … to a substantial increase in the volume of both credit and insurance. …