Life Insurance

22. If you want insurance protection only, and not a
savings and investment product, buy a term life
insurance policy.

23. If you want to buy a whole life, universal life,
or other cash value policy, plan to hold it for at
least 15 years. Canceling these policies after
only a few years can more than double your life
insurance costs.

24. Check the National Association of Insurance
Commissioners website (www·naic·org/cis ) or
your local library for information on the financial
soundness of insurance companies.

Checking Accounts and Debit Cards

25. You can save more than $100 a year in fees by
selecting a free checking account or one with no
minimum balance requirement. Request a complete
list of fees that are charged on these
accounts, including ATM and debit card fees.

26. See if you can get free or lower cost checking
through direct deposit or agreeing to ATM only
use. Be aware of charges for using an ATM not
associated with your financial institution.

Savings Products

27. Before opening a savings account, find out
whether the account is insured by the federal
government (FDIC for banks or NCUA for
credit unions). Financial institutions offer a
number of products, such as mutual funds and
annuities, which are not insured.

28. Once you select a type of savings account, use
the telephone, newspaper, and Internet to compare
rates and fees offered by different financial
institutions, including those outside your city.
These rates can vary a lot and, over time, can
significantly affect interest earnings.

29. To earn the highest return on savings
(annual percentage yield) with little or no risk, consider
certificates of deposit (CDs) or U.S. Savings
Bonds (Series I or EE).

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