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:

Paid Up Policy
This is a policy that has a reduced sum assured payable because premiums have ceased before the end of the original term.
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Permanent Health Insurance
Insurance which pays you an income, after a set period of time, whilst you are unable to work due to illness or you become sufficiently disabled and can't work.
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Personal Equity Plan (PEP)
A tax efficient way of saving which was replaced by the ISA in April 1999. If you already have a PEP, you cannot invest new money into it, but you can continue to hold it, or transfer it to a new provider.
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Personal Pension
A tax efficient way to save for your retirement. A personal pension accumulates a fund while you are working of which at least 75% has to be used to buy an annuity when you retire or reach age 75 to give you an income for the rest of your life.
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Policyholder
The owner of the policy, or the person who originally took it out.
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Probate
Probate is the legal process of proving a will, appointing an executor and distributing the estate in accordance with that will.
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Private medical insurance
A policy which will pay for some or all of the cost of private medical treatment, as long as the condition is covered by the policy.
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Product Provider
This refers to the insurance company who issued and administers the policy.
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Protected Rights
Protected rights are built up in a personal or occupational pension plan as a result of contracting out of the State Earnings Retirement Pension Scheme (SERPS) or the Second State Pension (S2P) ~ See also Ordinary Rights.
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