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Glossary of Terms:  J - L

This glossary covers terms related to retirement (including financial, insurance, legal and estate planning) and elder care. (For terms related to Medicare, click on Medicare Glossary.) To reduce download time, we have divided the Glossary into the following sections. Simply click on the section you want to see.

| A | B | C | D | E-F | G | H | I | J-L | M-N | O-P | Q-R | S | T-Z |

J

Joint and Survivor Annuity — An annuity issued on two individuals under which payments continue in whole or in part until both individuals die; also called a joint life annuity.

Joint Tenancy in Common — A type of joint tenancy of property without right of survivorship. Upon the death of any joint tenant, his or her ownership interest is transferred according to the terms of his or her will that may, or may not, provide for transfer to a surviving joint tenant(s).

Joint Tenancy with Right of Survivorship — A type of ownership of property by two or more persons in which each owns an interest in the whole. Upon the death of any joint tenant, his or her ownership interest automatically passes to the surviving joint tenant(s).

Junk Bonds — The two major rating agencies, Moody's Investors Service and Standard & Poor's, evaluate the financial strength of bond issuers and assign safety ratings to them. Bonds rated at or above "Baa" by Moody's Investors Service, or "BBB" by Standard & Poor's are referred to as investment grade bonds. Bonds that are rated lower are commonly referred to as junk bonds.

L

Lapse — Termination of a policy when a required premium has not been paid by the end of the policy's grace period.

Large-Cap — A stock with a high level of capitalization, usually at least $5 billion in market value (market value = price per share multiplied by number of shares outstanding). See also mid-cap and small-cap.

Licensed Health Care Practitioner — A physician (as defined by the Social Security Act) or a registered professional nurse, licensed social worker, or any other health care worker who meets the requirements of the U.S. Treasury Department.

Life Tenancy — After the owner sells a home, he or she leases it back and receives a written guarantee (life tenancy) that he or she can continue to live in the home for the rest of his or her life. A life tenancy is often arranged with an annuity set up to pay the rent.

Lifetime Maximum — The maximum amount of policy benefits available to an insured person during his or her lifetime.

Limited Payment Option — Premiums are paid for only a set period of time. After the last premium payment, the policy becomes paid-up for the remaining duration of the policy. After it becomes paid-up, the insurance company cannot cancel the policy and they cannot ask for more premiums. The tradeoff? — while premiums are being paid, limited payment plans are more expensive than continuous payment policies.

Living Trust — A trust created during someone's lifetime to hold assets during that person's lifetime, thereby removing those assets from probate at death. A living trust can be either revocable or irrevocable. It avoids probate and therefore gets assets distributed significantly faster than a will. Assets that a person wants to move to a living trust, such as real estate and bank or brokerage accounts, must be retitled so that the trust becomes the owner. For more information, visit How Living Trusts Avoid Probate.

Living Will — A legal document in which a person specifies which life-prolonging medical measures he or she does, and does not, want to be taken if he or she becomes terminally ill or incapacitated. For more information, a helpful article is Advance Directives, Living Wills, Powers of Attorney: What’s the Difference?

Long Bond — The U.S. government issues Treasury notes and bonds that mature in 2, 3, 5, 10 and 30 years. The 30-year bond is called the long bond; it is one of the benchmark indicators of interest rates.

Long-Term Care — A variety of services provided over an extended period of time to people who need help to perform normal activities of daily living because of cognitive impairment or loss of muscular strength or control. Care may include rehabilitative therapies, skilled nursing, and palliative care, as well as supervision and a wide range of supportive personal care and social services. It may also include training to help older people adjust to or overcome many of the limitations that often come with aging. Long-term care can be provided at home, in the community, or in various types of facilities, including nursing homes and assisted living facilities. Regardless of where it is provided, most long-term care is custodial care, the type of care that is not paid for by Medicare.

Long-Term Care Insurance — An insurance policy that helps pay for some long-term medical and non-medical care, like help with activities of daily living. Because Medicare generally does not pay for long-term care, this type of insurance policy may help pay for long-term care that you may need in the future. Some long-term care insurance policies offer potential tax benefits; these are called "Tax-Qualified Policies."

Long-Term Care Ombudsman Programs — Independent, nationwide, federally-funded services that work to resolve problems between residents and assisted living facilities, nursing homes and other residential care facilities.

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