Terms Used in Insurance You Should Remember

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.

Finding the Right Hedge Fund


It is true that there are a lot of these funds out there. Nevertheless, one should choose carefully which hedge fund investments they should invest in. There are factors that you have to consider when looking for the perfect fund for you:


  1. Genuineness

You have to keep in mind that not all hedge funds out there are genuine. There are also frauds or scams. That is why you have to really research about a certain company before investing in them if you do not want your money to be wasted. The first thing you should research is whether the company is registered in your country or not.


  1. Reliability

Before investing, do some research on how reliable the company is. You can check the feedback of other investors. You can check some customers’ comments and reviews to find one. If it is good, then there is a high probability that you will also like what this company offers. If you think and you doubt that it’s not even practical, then there is no need for you to pursue that choice. Also, evaluate whether it provides reliable database on their funds.


  1. Experience

Know when the company started operating. The number of years of their experience gives you an idea on how expert they are. Of course, the company that has been in the industry for a longer time gives an impression that they are better than those new firms.


  1. Customer Service

If you are a beginner in this industry, then it is best to look for a company that offers the best customer service. Customer service is highly imperative in determining a good and stable relationship between the company and the client. This is to ensure that you will get the assistance that you need to be successful in hedge fund investments.


  1. Hedge Fund Manager

You should know some details about their hedge fund manager. The manager will be the one to help you make money. Therefore, you have to make sure that you have the best manager if you want to maximize your earning potentials in this industry.

Now that you already know the most important details about hedge funds, you can now become one of the great hedge fund investors out there. Start first with a reasonable amount of money before investing a lot. This is to help you understand the game of this industry first.


Financial Tips for Starting Individuals

Financial Tips

Starting is always the hardest part. If you are a fresh graduate, you will surely find things difficult. Looking for a good and stable job for one is hard. Saving money for the future is another thing. It is important that you know how to manage your finances as early as now for you to survive.

Here are some tips that you can consider for every financial dilemma you have:

Tuition Fee Loans

There are Singaporeans who depend on tuition fee loans to sustain their studies. When you graduate, you will be asked to pay the loan. A letter (Commencement letter) will be sent to you. The letter will tackle your payment options – repaying it in full, repaying it partially and repaying it monthly. The tip here is not to postpone or delay the payment. If you do not start right away, after two years, you will be charged an additional 1%. You have to allocate a portion of your monthly income for the tuition fee loans.


Credit Cards

As much as possible, you have to avoid using credit cards. Credit cards are borrowed money. If it is borrowed, you should expect an interest. Every time you sue the card, you are borrowing money from your bank. If you do not pay within the given period, you will incur interest. The best tip – do not spend more than your means. You have to pay in cash and do not make acquisitions with your credit cards unless you really need it.

Buying a House

If you want to be independent, you will think of moving out and purchasing your own house or flat. You have to decide if you want to purchase private property or HDB flat. When you buy a house, you will face down payment and monthly payments. The best tip is to clear your debts so you can focus with your house.

Planning a Wedding

After securing your house and car, the next thing that you should think about is your wedding. Getting married will be one of your biggest decisions in life. Weddings are expensive here in Singapore but you do not need to drain your bank accounts for this event. The best tip is to talk with your partner and determine the price ceiling. If you want a budget wedding, you will not spend so much but if you want an extravagant one, expect to spend so much.

Managing your finances is a complicated thing to do but it is necessary. If you do not learn how to manage your finances, you will suffer.