Should I Sign up for Identity Theft Insurance?

To find out the answer to the question raised above, let us first take a close look at how identity theft insurance works for us to eventually realize if such policy can really work to our advantage.

What is identity Theft Insurance all about?

As its name implies, an identity theft insurance policy offers coverage to consumers who have lost their identities to online hackers and fraudsters. Under this policy, consumers, like you, can recover the wages they’ve lost while filing complaints with the authorities and while addressing their concerns with their credit card issuers and lenders.

According to the Privacy Rights Clearinghouse, victims of identity theft spend 22 days, on the average, to repair the damage that it has inflicted in their credit profiles. This means that if you signed up for identity theft insurance; you can look forward to recovering the income you’ve lost for almost one whole month!

Still, it is worth mentioning that insurance companies normally offer widely-varying terms, conditions, and coverage. Hence, if you wish to find one that suits your needs, financial capability, and preferences; it is a MUST that you take the time to compare the features imposed on various plans. In so doing, you will most likely end up with a policy that will surely meet your expectations.

Based on recent market studies, most insurance firms can provide victims of identity theft as much as $2000 – a lump-sum that will cover the following fees and charges: postage costs, legal fees, phone bills, and even processing charges. However, the amount can vary depending on the amount of premiums you will submit to your chosen broker, either on a monthly or a yearly basis.

Should You Apply for It?

Now, would it be wise for credit consumers, like you, to purchase identity theft insurance? The decision will be all up to you. However, you should always remind yourself of the limitations of such policy.

For instance, an identity theft insurance plan will not help you recover the cash you’ve lost to identity thieves and scam artists. Moreover, such policy does not really deter fraudsters and online hackers from gaining illegal access to your personal and credit information. No wonder, more and more consumers today do not find it necessary to sign up for such program.

It is also worth mentioning that most traditional insurance policies and even credit programs tend to come with identity theft insurance. So, if you will decide to apply for another policy on top of what you already have, you might end up paying substantial cash on redundant charges. So, before making up your mind, find the time to take out and review the provisions of your existing insurance program. That way, you can avoid making additional payments on a coverage that is already included in your current policy.

We also discourage you from jumping on the first program you will find. Instead, heed the advice of finance experts and take the time to compare the offers you will receive from different insurance brokers. After all, such decision can help boost your likelihood of finding an insurance policy that will absolutely match your preferences and budget.

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

4 Comments
  1. This is a VERY useful post. Thank you for the tips. I am going to use them starting today

  2. Can identity theft insurance really protect you from the trouble of stolen identity? Usually we need to have this kind of security. In the modern age, identity theft has become a greater problem than before. Prior to the computer age, identity theft was the same as to “borrowing” your older brother’s driver’s license to get beer, but today it means far deeper than before. A payday cash advance could not even begin to cover damages, such as loans taken out and cars, or even houses purchased using your name.

  3. Identity theft has been frequent nowadays. But because of the global financial crisis, even those who are already having trouble with their mortgage were victimized by mortgage scams. However, before you fall victim to mortgage scams, you may want to take advantage of the federal loan modification program. The federal program allows you to refinance or modify your personal loans so that you don’t end up in foreclosure. Simply signing up isn’t good enough – you have to prove your worthiness, and people with a mortgage of over $750,000 can just forget about it.

  4. Thanks for this post. Really useful and informative!

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

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