Identity Theft Insurance
Many people think credit protection services are the same thing as identity theft insurance. Unfortunately, if you enroll in a credit protection service program, it may only monitor credit cards issued by a specific bank. On the other hand, when you purchase identity theft insurance, you will be placing all of your financial instruments under one policy. You can even purchase identity theft insurance as an additional rider on your home owner's policy.
Typically, identity theft insurance is a much better option than anything your lender can provide. This coverage is designed to do everything from settle bills incurred by the identity thief to paying for all of the costs associated with changing your stolen information. As an example, it may cover things like getting a new driver's license, as well as any legal fees that you might incur.
Aside from this, identity theft insurance is a good bit cheaper than enrolling in a credit protection plan. Consider that your bank will charge you a monthly fee that may be tied to your current balance. On the other hand, identity theft insurance may cost as little as 25.00 for an entire year of coverage. You may also be able to find policies that will also include free monitoring of your credit report.
Even though many people today are making a move to purchase identity theft insurance, others feel that the police and the banks have enough resources to resolve the issue. Unfortunately, until you have actually had your identity stolen, you don't realize all that is involved to repair the damages. Aside from canceling your credit cards, you will also need to do many other things.
Consider a situation where your paycheck is automatically deposited to your bank account. As soon as your financial information is compromised, you will have to change the bank account number. As you may be aware, it takes three days for electronic funds to complete the transfer process. If your paycheck is on the way into your account, your money will be at risk while you wait for the transaction to complete. On top of that, you will need to provide your payroll clerk with a new bank account number. You may even wind up receiving paper checks for a few weeks until the new electronic transfer information is established.
As may be expected, enrolling in a credit protection program will be useless in this situation. On the other hand, identity theft insurance will cover any expenses incurred while you are working to resolve the situation. In addition, it is likely that they will also cover lost wages that are incurred because you must use work hours in order to manage your identity theft issues.
Unfortunately, as the global economy continues to crumble beneath the weight of unbridled warfare, political corruption, and environmental disaster, more people will be using criminal means to obtain money. Today, identity theft is one of the largest threats to the average consumer. As a result, many banks and lending institutions offer credit protections services. Unlike identity theft insurance, these programs will not cover all of your assets. While identity theft insurance will not prevent these issues from occurring, it is the most affordable and useful way to help you recover.