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Explanations of some of some of our financial terms


Use this glossary of common – and not so common – insurance terms to help you understand words and phrases you may not have come across before.


  • Schedule

    Found in: Car Insurance, Home Insurance, Pet Insurance, Travel Insurance, Life Insurance

    Your schedule includes the:

    - period of cover
    - name of the policyholder
    - sections of insurance that apply
    - the cost (if it's a Life policy or plan)
    - limits of cover, and
    - any conditions that may vary the terms of your insurance.

    For travel insurance it identifies you, the period of insurance, the area of cover, the sections of this document of insurance that apply, and conditions which may change the terms of the document of insurance.

  • Security devices

    Found in: Car Insurance

    Security devices are things that make your vehicle less likely to be stolen, such as car alarms, immobilisers and tracking devices. See Immobiliser.

  • Single trip travel insurance

    Found in: Travel Insurance

    Single trip travel insurance, also known as single trip holiday insurance, means cover for just one holiday. A trip can't be more than 366 days if you are less than 65 years of age or more than 90 days if you are 65 years of age or over. Your trip is from the trip start date to the cover end date shown on your policy schedule. If you return home before your cover end date, all cover will also end.

  • Ski equipment

    Found in: Travel Insurance

    Ski equipment includes skis, bindings, poles, boots, or snowboards.

  • Ski pack

    Found in: Travel Insurance

    A ski pack is hired ski equipment, pre-booked ski school fees and lift passes.

  • SORN (Statutory Off Road Notification)

    Found in: Car Insurance

    A Statutory Off Road Notification is a declaration by the registered keeper that a vehicle isn't taxed because it's kept off the road.

  • Standard construction

    Found in: Home Insurance

    Standard construction means brick, stone or concrete walls, with a slate, tile, metal, asphalt or concrete roof.

  • Start date

    Found in: Car Insurance, Home Insurance, Life Insurance

    The start date is when your plan or policy starts. This date is shown in your Plan or Policy Schedule.

  • Student possessions insurance

    Found in: Home Insurance

    Student possessions insurance covers your contents while temporarily removed from your home whilst at university.

  • Subsidence, landslip and heave

    Found in: Home Insurance

    Subsidence is the vertical downward movement of a building foundation caused by the loss of support of the site beneath the foundations.
    Landslip is the sudden movement of soil on a slope or gradual creep of a slope over a period of time.
    Heave is the expansion of the ground beneath part or all of the building.
    See Royal Institution of Chartered Surveyors (RICS) (

  • Sum assured or insured

    Found in: Car Insurance, Home Insurance, Life Insurance

    See cover.

  • Surrender value

    Found in: Life Insurance

    Surrender value is what you might get back if you stop paying into your policy, for reasons other than death, before the agreed date. Most of the life insurance policies provided by LV= don't have a surrender value, so if you stop paying your premiums you get nothing back.

  • Systemic Lupus Erythematosus (SLE)

    Found in: Life Insurance

    This is where the immune system attacks the body's own cells and tissues, resulting in inflammation and tissue damage. It can affect any part of the body but most commonly affects the heart, joints, skin, lungs, blood vessels, liver, kidneys and nervous system.

  • Term

    Found in: Car Insurance, Home Insurance, Life Insurance

    The term is how long you're covered for.

  • Term insurance (or term assurance)

    Found in: Life Insurance

    Term insurance (or term assurance) is a form of life insurance that offers cover for a fixed period, during which a lump sum will be paid out if the life insured dies.

  • Terminal illness

    Found in: Life Insurance

    A terminal illness is a rapidly progressing and incurable illness where, in the opinion of an attending consultant and our Chief Medical Officer, you're not expected to live for more than 12 months from the date you're diagnosed.

  • Territorial Limits

    Found in: Pet Insurance

    Territorial limits means your pet is covered under all policy sections whilst in the United Kingdom.

    In addition, provided you comply with all the Pet Travel Scheme (PETS) regulations and requirements that apply both in the United Kingdom and the country to which you are travelling, this insurance also extends to cover your pet whilst temporarily located in any member country of the Pet Travel Scheme (PETS) excluding non EU listed countries as defined by the government Department for Environment Food and Rural Affairs (defra).

  • Terrorism

    Found in: Car Insurance, Home Insurance, Travel Insurance

    Terrorism is an act or threat of action by a person or group of people, whether acting alone or in connection with an organisation or government, committed for political, religious, ideological or similar purposes intended to influence any government or to frighten the public or any section of it. An 'action' means: violence, damage to property, putting life in danger, creating a public health risk, or disrupting electronic systems or transport services.

  • Thatcham

    Found in: Car Insurance

    The Motor Insurance Repair Research Centre, at Thatcham, carries out research for the motor insurance industry on the cost of car repairs and vehicle security. Thatcham research data are used as the basis for the Group Rating Panel's motor insurance group recommendations.

  • Third degree burns

    Found in: Life Insurance

    Burns which extend through the full layer of skin including the dermis and epidermis layers.

  • Track day

    Found in: Car Insurance

    A track day is when you drive your vehicle on a motor racing track, circuit, airfield, test venue, derestricted road or at an off-road event.

  • Tracking device

    Found in: Car Insurance

    A tracking device is a security feature that can help the police find your car it it's stolen. Probably applies only to newer cars and may involve an annual subscription.

  • Travelling companion

    Found in: Travel Insurance

    A travelling companion is a person who's booked to travel with you on your journey.

  • Treatment

    Found in: Pet Insurance

    Treatment is any examination, consultation, advice, tests, x-rays, drugs or medication administered or prescribed, surgery, nursing or care provided by, or under the direction of, a vet.

  • Trip

    Found in: Travel Insurance

    See 'Journey'

  • Trust

    Found in: Life Insurance

    A trust is a legal arrangement set up by the owner of something (such as a life insurance policy) to be looked after until the time comes when it can be given to someone else. One benefit of setting up a trust is that you can make sure your life insurance payout goes to your dependants. By placing the policy in trust this may also help them avoid paying inheritance tax on the monies they receive.

  • UK market value (breakdown insurance definition)

    Found in: Car Insurance

    UK market value is the value for the relevant make and model as specified in Glass's Guide or recognised equivalent. See market value for general motor insurance definition.

  • Underinsurance

    Found in: Home Insurance

    Underinsurance is when you don't have enough insurance to cover the insurable value of your property. If you're underinsured, you're unlikely to be able to recover all your losses if you need to claim.

  • Uninsured Loss Recovery (ULR)

    Found in: Car Insurance

    If a motor accident was the fault of a third party, we'll try to recover your uninsured losses such as repair costs, policy excess, loss of use, hire costs of alternative vehicle, transport costs, etc.

  • Unoccupied

    Found in: Home Insurance

    Unoccupied means not attended overnight by you or a member of your family or any member of your domestic staff.

LV=, County Gates, Bournemouth, BH1 2NF, UK