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The article focuses on the association between weather risk and poverty as well as the significance of weather index insurance for agricultural and rural areas in lower-income countries in the U.S. Uninsured weather risks tend to contribute to the existence of chronic poverty, though health problems are often considered as the greatest risk encountered by many rural households. The risk of extreme weather events contributes to the existence of chronic poverty. It was concluded that the effective mechanisms transferring risk can catalyze investment and economic growth, lessening poverty in rural areas of lower income countries.