Financial Jargon Buster - L
- Land registration
- A record, held by the Land Registry,
which lists the registered owner of a plot and whether there are any legal
charges upon it.
- LAPR
- Life Assurance Premium
Relief.
- Lapse
- The termination of an insurance policy
due to non-payment of premium(s).
- Lapsed Policy
- A policy terminated for non-payment of
premium(s).
- Late Entrant
- These are individuals who wish to join
a group insurance scheme beyond the date at which they were automatically
eligible for membership.
- Leasehold
- If you buy a property that is leasehold
it means that you own the property but not the land the property is on, unlike
freehold where you would own both.
- Legal charge
- The legal document held by the Land
Registry that identifies who has a claim on your property. The main lender will
normally be identified as the first charge (i.e., have first claim to the
property) but there may also be other charges registered (i.e., second, third,
etc.).
- Level Premium
- Rating method in which the premium
level remains the same throughout the life of the policy.
- Level Term Insurance
- A type of term policy where the cover
remains the same from the effective date until the expiration date.
- Life Annuity
- A contract that provides an income
during the remaining lifetime of the purchaser.
- Life Assurance Premium Relief
- Income tax relief on life assurance
premiums. The March 1984 Budget stopped this relief for new policies, but life
policies that commenced before this date can continue to receive the relief.
Relief is granted by means of a deduction from the premium, which is paid to
the insurance company net of this deduction. The insurance company later claims
the balance from the Inland Revenue so the amount paid and, if appropriate,
invested on behalf of the policyholder is the full gross figure as shown in the
policy document.
- Life Insurance
- Any insurance relating to a risk
depending on human life.
This includes contracts providing payment on the insured person's death, endowments providing payment either on survival to a specified date or on earlier death and annuities which are paid throughout the annuitant's lifetime but cease on death.
- Limited Price Indexation
- Occupational pension schemes are
required to provide Limited Price Indexation on all pensions benefits accruing
after 5 April 1997. The annual LPI increase is 5% per annum or the increase in
the Retail Price Index, if less.
- Lloyds
- The London-based insurance market, best
known for marine and aviation cover. The name is taken from Edward Lloyd who
owned the coffee shop in Tavern Street from where the market began in
1689.
- Loading
- The extent to which an individual is
charged more than the "standard" or "average" rate for their
insurance.
- Long Term Care Insurance
- A health-insurance variation designed
to cover the costs of long term care at home or in a nursing home.
- Long Term Disability Insurance
- Insurance to provide a reasonable
replacement of a portion of a person's income lost through serious illness or
injury.
- Loss Adjuster
- A Loss Adjuster is an independent third
party who may be used by an insurance company to assess the value of a claim,
particularly if there is a disagreement between the insurer and the
insured.
- Loss Assessor
- A Loss Assessor is a professional who
can be employed by a claimant to value a loss and present the insurance company
with a supporting case for this valuation. Loss assessors are most often
encountered in respect of claims under home contents or buildings
insurance.
- Low cost endowment
- A savings plan which includes
decreasing term insurance. It pays out at the end of the term, and also if you
die within the term. Usually used to pay off an interest only
mortgage.
- Lower Earnings Limit
- The minimum amount that must be earned
in any period before National Insurance contributions are payable.
- LTV
- Loan to Value. This is the amount of
the mortgage expressed as a percentage of the value of the property, or the
price you are paying for the property. So a £60,000 mortgage on a
£80,000 property would mean a LTV of 75%.
- Lump Sum
- A settlement whereby the beneficiary
receives the entire proceeds of a policy at once rather than in
instalments.
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