Expensive insurance

We have limited funds and need every bit of income possible. In addition to three certificates of deposit, we have $15,000 in various savings including $1, 000 in regular savings at 5 3/4 and $2,000 in a credit union account at 6 3/4 that includes $2,000 of life insurance. Any suggestions? C. M.

While your certificate accounts are doing reasonably well, you could be gaining more income from the $3,000 now in regular savings. I suggest moving the $1,000 into one of the repo deposits at a strong S&L or into a money-market mutual fund. The $2,000 in credit union savings are losing at least $140 a year in potential income. The $140 premium for $2,000 of insurance appears high. Thus, you should ask -- is the insurance necessary and are there any other alternatives for gaining $2,000 coverage for less than $140? The $140 is the loss of earnings represented by the difference between 6 3/4 percent and 13 3/4 percent or more that could be earned elsewhere. Without knowing more about your personal situation, including health, I can only suggest you examine your alternatives more closely.

Readers are invited to send questions to Monewise, Box 102, Mercer Island, Wash. 98040. Only questions covering topics of general interest can be answered here, and no question can be individually acknowledged. Reference to specific stocks, funds, or other investments in this column are intended for the general information of reades and not as an endorsement or recommendation by The Christian Science Monitor.m

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