Terms Used in Insurance You Should Remember

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Are you planning to get an insurance for yourself or for your possessions? It is important to understand what you are getting into and what you are investing your money in before signing any documents.

While you do not have to be an expert in insurance, it would not hurt to know the most common terms you might hear or read in order to make an informed decision.

  • Insurer – This refers to the company that will accept the risks after the pays claims and premiums are received.
  • Insured – It means that the party or person has an insurance against risks and is the one paying the insurance.
  • Beneficiaries – The person/s to whom the policy will be paid in case something happens to you.
  • Broker – A professional who advises people who want to get insured. The broker can act as your agent.
  • Premium – It refers to the amount you pay regularly in installments to the company based on the agreed amount in the insurance policy.

  • Commission – The money that is paid to the brokers who are selling the insurance. The commission is paid by the insurer.
  • Excess – It refers to the amount you must pay if you want to claim your policy. The amount will depend on what is specified in the policy.
  • Liability – It refers to your responsibility of the adverse actions you might have taken or the lack thereof.
  • Third Party – Another person, company, or group of people that may be affected by your actions. The other parties are you and the company.
  • Sum Insured – Premiums are calculated based on this factor. It is the value of the goods at risk or the goods you want to insure.

  • Indemnity – This is the sum of money paid as a compensation in case of loss or other financial burden.
  • Damages – This refers to the monetary compensation for a breach of contract or a civil wrong. The compensation is given to the party affected.
  • Reinsurance – The act of transferring all or part only of the risk to another company. This is usually done to reduce the amount commensurate with the financial resources in case of loss.
  • Double Insurance – If a subject is insured in two or more companies, the total sum insured exceeds its value. You can have a person or item insured twice but with different insurers.

  • Deductible – This refers to the amount you have to pay for damages sustained from your own pockets before the insurance can start to pay.
  • Co-Payment – Half or some of the fee that you pay for medical visits while half of it is paid by the insurance provider.
  • Face Amount – This is the amount of money the insurance policy will pay if the insured dies.
  • Coverage – This can be term or whole life coverage in most insurance companies. Coverage specifies the period of time or term with a defined end date.

3 Money Management Apps for Spenders and Savers

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Singapore continues to top the charts as the most expensive city in the world, so it’s especially important for us to keep track of our expenses on a regular basis. However, manually budgeting our expenses can be too much of a hassle; it can take too much of our time, the chances of forgetting an item are too large. Thankfully, technology can come to our rescue. Here are some of the apps on the market today that can help you manage your expenses.

1. Wally
One of the best things about Wally is it’s easy to use, friendly interface. With Wally, it’s easy to track both your expenses and income. It even allows you to organize your expenses into different categories. You can even add labels to your entries to help you remember what it was exactly you were spending on.

Wally can even track your savings, and project your budget for the day. If you have spent beyond your daily budget, Wally notifies you and tells you how much you have overspent. Additionally, Wally can scan your receipts, add a passcode, and record the location of each entry. As a bonus, Wally is completely free and is great for people who need to be able to track their expenses. It is available in both the App Store and the Play Store.

2. Expensify
Although a bit more complicated than Wally, Expensify is an app that is great for both personal and business use. Since businesses deal with a lot of receipts, Expensify allows you to record, track, and label your receipts. It even lets you add details like date and merchant’s name, should you need to include those details. It even lets you categorize these receipts into a category for reimbursements, to remove the anxiety of losing receipts.

Expensify has a lot more nifty features, like time tracking, which is great for people who are paid on an hourly basis. For those who love to travel, Expensify also allows you to enter expenses in any currency. It is available for both Android and Apple users.

3. Pocket Expense
Pocket Expense is a great app for people whose expenses are a little more complicated than the average spender. This app lets you track a more detailed version of your personal financial status, including things like debt, cleared debt, and overall net worth. It even has a cash flow feature that allows you to track how much money you’re earning and losing, a feature that can prove to be both handy and invaluable for business owners.

Like other finance apps, Pocket Expense also allows you to create multiple budgets, set a limit for each budget, and even has a feature that alerts you whenever you have a bill due. Pocket Expense is available for free on both the App Store and the Play Store.