A handy jargon buster to help you understand some health insurance terminology.


An insurance policy is said to ‘lapse’ if it’s not paid for, and cover will eventually be terminated.

Find out more about what happens, and what your options are, if you can’t afford your insurance premiums.


A latent claim is any claim on insurance made after the cover has ended. These usually occur when there has been a delay assessing the damage or impact the claim is based on, or if the cause of the claim took time in developing. For example, an environmental pollution claim could happen years after cover ended.


Also known as life insurance. Insurance that pays out upon the death of the insured person, providing their designated beneficiaries with financial stability, usually in the form of a tax free lump sum. Group life insurance is when this policy is provided by an employer to many employees to make the policy more cost effective.


Lifestyle surgery includes both corrective surgery and weight loss surgery.

  • Corrective surgery could include ear shaping or removal of birthmarks in children, or breast reductions and gynecomastia in adults.
  • Weight loss surgery could include Gastric banding or Gastric bypasses in obese patients.

Whether lifestyle surgery is covered by private medical insurance really does vary between policies and providers. Most health insurers do not include lifestyle surgery as a benefit.


This is the maximum amount your health insurers will pay for all of your health and medical expenses altogether. After this maximum is reached, your policy effectively ends.

It’s quite rare so see Lifetime Maximum Benefits included in health insurance policies these days, but your Towergate Health & Protection advisor will tell you if a policy you are considering involves this.


Lump sum means ‘as a whole’ – so in terms of insurance a lump sum payout would mean receiving one large payment of money, rather than smaller installments.

Critical Illness Insurance, Life Insurance and Death In Service Insurance are all types of benefits that are paid in lump sums.

Chase Templeton Limited is registered in England and Wales No. 3299980 – registered address: 5 Arkwright Court, Blackburn Interchange, Darwen, BB3 0FG. Towergate Underwriting Group Limited is registered in England and Wales No. 4043759 – registered address: Towergate House Eclipse Park Sittingbourne Road Maidstone Kent ME14 3EN.  VAT Registration No: 447284724.