Worried that your financial institution could fail?

The protection you get may be based on the type of account you have and how well you document your loss.

Some of your best protection comes if you invest with a bank or savings institution insured by the Federal Deposit Insurance Corp. or a credit union insured by the National Credit Union Share Insurance Fund. Generally, both organizations, backed by the U.S. government, cover each depositor to $250,000 -- at least through 2013.

There are ways to federally insure millions of dollars. That's because you may get separate FDIC or NCUSIF insurance protection in different categories of account ownership. Right now, for example, a family can get $250,000 worth of coverage through 2013 on each of the following categories:

• Single accounts, titled in one person's name.

• Retirement accounts, such as IRAs and SIMPLE plans.

• Joint bank accounts owned by two or more people. They are insured to $250,000 per joint owner.

• Revocable trust accounts, also known as "payable on death" accounts.

Trust accounts are covered to $250,000 per account holder and another $250,000 per beneficiary.

The federal insurance coverage kicks in through the institution's date of failure and includes interest. You might wish to consider avoiding "simple interest CDs," which pay interest only at maturity.

Double-check that you don't exceed insurance limits by going to www.myfdicinsurance.gov or calling 1-877-ASK-FDIC.

If you own stocks, bonds, mutual funds or exchange traded funds, unlike with bank or credit union accounts, you assume most risk.

The Securities Investor Protection Corp. covers you to $500,000, including $100,000 in cash, if your brokerage is a member. However, this differs dramatically from federal insurance you get from banks or credit unions.

About the only circumstance in which the Securities Investor Protection Corp. might step in is if there's a possibility your assets are missing at an insured brokerage house. Even then, coverage excludes investments in commodity futures, fixed annuities, currency, hedge funds or investment contracts, like limited partnerships, that are not SEC-registered.

If your brokerage house goes bust, and regulators can't find an acquirer, the brokerage could be liquidated.

Most brokerage customers should get their assets in one to three months, according to the Financial Industry Regulatory Authority.

However, typical mistakes that may delay any payouts include incomplete personal contact information or incorrect references to the brokerage firm involved; missing deadlines for filing claims; and missing documents required to be attached to a claim. Never submit originals, which risk getting lost in the mail. It's often best to act quickly and in writing, keeping copies of all communications.

If one of your investments goes belly up, and you wind up a creditor, consider that bondholders typically get paid before stockholders. Preferred stockholders get paid before common stockholders.

In an insurance company failure, your state insurance commissioner likely will take control of the company's operations or appoint a receiver. Each state has a life and health guaranty association to protect policyholders of licensed insurance companies. The guaranty association and the insurance commissioner and receiver determine whether to liquidate the company or transfer it to a financially sound insurance company. If liquidated, the state guaranty association provides coverage to company policyholders who are state residents to limits specified by state laws. Those limits may vary by state, but they generally run:

• $300,000 in life insurance death benefits,

• $100,000 each in life insurance cash surrender value, annuity withdrawal and cash value and health insurance policy benefits.

If an association runs out of funds, state guaranty associations assess licensed members a share of the amount required to meet covered claims.

Unfortunately, this protection isn't much. So only invest with the financially strongest insurance companies, rated A+ and A++ by A.M. Best and AAA by Standard & Poor's.