Pearl - Jargon Buster

Use our Jargon Buster to cut through the complicated language financial services companies sometimes use, and find out what it really means. The list is in alphabetical order so you can scroll down to look up words and their meanings:

Land Register
A record of the registered owner of land, and of whether or not there are any mortgages or other restrictions on use affecting it .The record is held by the Land Registry.
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Leasehold
Leasehold property has the right to use the land on which it is built for a number of years, often initially 99 or 125. Leasehold is normally used for flats.
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Letters of Administration
The legal process of distributing an estate for someone who died without leaving a will.
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Level Term Assurance
The simplest type of life assurance. If you die during the time you are covered, it pays out a specified sum of money to your dependants. The premium remains constant throughout the term.
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Life Assurance Premium Relief (LAPR)
This is tax relief on payments paid into life policies taken out prior to 12 March 1984. Very few life policies benefit from this now.
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Lifetime Allowance Charge (pensions)
The tax charge levied on those parts of an individual’s pension benefits which are above the standard lifetime allowance (or their personal lifetime allowance, if higher).

The tax charge is 55% if the excess benefits are taken as a lump sum, or 25% if the excess is used to purchase a regular pension income.
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Lifetime Annuity
A regular income payable by an insurance company chosen by the pension scheme member when they retire, for the remainder of their lifetime.
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Life Insurance
An insurance policy that pays a fixed amount of money if you die during the time it covers.
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Limited Price Indexation (LPI)
This is applied to increase some deferred final salary occupational scheme benefits, and is the lesser of the retail price index published in the previous September, and 5%. (Reducing to 2.5% for service after 6 April 2005).
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Low Cost Endowment
A savings product, which always includes life assurance. It pays out a fixed amount known as the sum assured plus any bonuses at the end of a fixed term. It is usually used to pay off the capital of an interest only mortgage but doesn't guarantee to do so. It also pays off the amount of mortgage covered if you die during the term.
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