Insulation is one of those products you only think of when you can't get your home warm in the winter or when the oil or gas delivery comes and you are in shock because of the high bills. This is when you usually get motivated to do something. But please don't make the mistake of thinking more insulation is better, or don't run out and buying insulation to stuff here and there.
There is a science to it and the most important part of a quality insulation job is air sealing. I know what you are thinking. Without writing a book, I will explain it as simply as possible. Air Sealing is a process of reducing air intake and output. This happens by sealing your rim joist, plumbing and electrical penetrations in the basement, sealing the top plates of partitions in the attic and weather stripping entry doors.
Now that you have air sealed, it is time to add the insulation. By adding insulation at this point, the goal is to build up R-value which is the resistance to heat loss. When these two processes are combined, you are in for some very measurable savings.