Topic 13

Question 1

What is a MIG Mortgage Indemnity Guarantee?

Answer 1

An insurance policy that protects the lender in cases of high LTV (usually 75-80%) against the shortfall that could occur if the borrower defaults and the property has to be sold by the lender.

Question 2

What are the 5 types of Endowment policies?

Answer 2

1, non-profit
2, full with-profits
3, low-cost with-profits
4, unit-linked
5, unitised with-profits