NPI - 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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Pensions Input
This is the actual, or deemed, amount of pensions savings made by a scheme member in a year.

For a money purchase pension scheme, it is the total of the contributions paid by, and for, the member.

For a defined benefit pension scheme, it is the capital value of the increase in the member’s defined benefits from one scheme year to the next.
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Pensions Input Period (PIP)
This is the period over which a member’s pensions input is measured.

For pension schemes where NPI is the scheme administrator, the PIP is aligned with tax years, so it runs from each 6 April and ends on the following 5 April.
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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 Lifetime Allowance (pensions)
An individual’s personal lifetime allowance will be either
(a) The standard lifetime allowance; or
(b) Such higher amount granted to them by the HM Revenue and Customs, for example,
under primary protection or fixed protection.
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Personal Pension
A type of money purchase pension scheme which offers a tax efficient way to save for retirement.
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Policyholder
The owner of the policy, or the person who originally took it out.
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Primary Protection (pensions)
An option to help protect pension rights built up prior to 6 April 2006, from the Lifetime Allowance Charge.

The option was open until 5 April 2009 to those with existing pension rights whose value, as at 5 April 2006, exceeded �1.5m.

If the value of pension rights increases at a faster rate than the increase in the Standard Lifetime Allowance, then some liability to the Lifetime Allowance Charge could arise.

Protection must be registered with HM Revenue and Customs.
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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 (pensions)
These are funds under a money purchase pension scheme which have built up, either directly or indirectly, as a result of being contracted-out of the state earnings related pension scheme (SERPS) and/or the state second pension (S2P).

Since they replace some state pension benefits, they are subject to special rules.

From 6 April 2012, protected rights cease to exist. Any which exist on 5 April 2012 become non-protected rights, so they cease being subject to special rules.
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