Financial Favourites

News from the BBC:

A big shake-up of UK banks with taxpayer support will be unveiled on Tuesday, the BBC understands.

Announcements on the future of Lloyds and Royal Bank of Scotland will be made jointly by the banks and the Treasury.

Lloyds is expected to say it will raise more than £20bn from investors in return for staying out of the state-run insurance scheme to cover toxic loans.

Both will also have to set up new banks out of their existing branch networks and sell them within four years.

The creation of the new banks is on the instruction of the European Competition Commissioner Neelie Kroes and is supposed to boost competition.

RBS is also expected to confirm that it will participate in the government’s toxic loan scheme, but on different terms.

The bank, which is 70% state-owned, would buy an insurance policy from the government to cover future losses from some of its more toxic investments.

According to this news article from the BBC web site the worst of the recession is over:

The worst of the UK’s recession is over, according to the British Chambers of Commerce (BCC) business group, but talk of a recovery is premature.

Its report, based on a survey of 5,600 companies, found there had been “welcome progress” in confidence levels between April and June.

But the BCC is still predicting that unemployment will reach 3.2 million by the middle of 2010.

It warned that the increase in confidence was fragile.

So we are not out of the woods just yet but it’s certainly a good sign.  Finance will remain difficult to get unless you use guarantor loans from companies like FLM Loans.  Remember though, cover yourself with something like Income Protection Insurance just to be safe!

When you take out a guarantor loan, depending on the lender, you may be offered payment protection insurance, so what is this and should you take it?

Payment protection insurance is insurance against the worst happening and you being unable to make payments.

If you feel that you need protection, to make sure that you maintain your payments, it may in fact be better to look at income protection insurance as this is cover for the same sorts of eventualities but instead allows you to distribute the payouts however you wish, be it on loan repayments or on food, utility bills and so forth.

For more information on Guarantor Loans please click here.

For more information on Income Protection Insurance click here.

Life insurance barely needs explaining.  If you have people who rely on you to support them then you need to consider protection their future in the event of your death.

If you die prematurely life insurance will pay a large sum to your elected beneficiary.

If you would like to consider life insurance and would like a free quote, please click here.

Just because you have the financial security you need at the moment does this you’ll have it if you lose your job, or become too ill to work?

Income protection insurance is a way to prepare for this, like other insurance products you pay a premium to protect against a possible future event.

This inusrance pays out a monthly, agreed, sum to you after you lose your job to enable to you pay bills and cover expenses.

For more information on income protection, please visit:  www.incomeprotection-insurance.co.uk