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Identity Theft Insurance
Is Identity Theft Insurance Good For You?
Recent reports, given by the FTC, have caused many consumers to become worried about the rise of identity theft and
enquire about identity theft insurance and the financial institutes that
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offer it. Experts estimate that approximately
400,000 Americans become victims of identity theft each year. Current identity theft statistics have shown that
approximately 1 out of 5 consumers are targeted victims of identity theft . These statistics provides a reasonable concern
and just explanation for why countless Americans are researching ways to acquire identity theft insurance for the security
and protection of their families.
Since there has been a recent increase in identity theft reports, many financial institutions are offering identity theft
insurance as a service to assist families that are coping as victims of identity theft. This identity theft insurance is not
only useful in assisting victimized families but it also serves to protect untargeted families and individuals from any
future or possible cases of identity theft. Victims, on average, have spent over $5 billion of their own money to help
repair damages caused by identity theft. With identity theft insurance, companies agree to reimburse clients for out of
pocket credit recovery expenses up to a certain dollar amount. They not only perform this service, but with identity theft
insurance financial institutes also help victims with the tiresome process of contacting creditors, writing affidavits,
filing reports, and possible expenses for identity theft court cases.
Some of these financial groups offer identity theft insurance for as low as $10 per month and can cover up to $15,000 in
insurance, nondeductible, to offset recovery costs including lawyer fees and lost wages. One of the major benefits to
having identity theft insurance is that they daily monitor the client抯 credit report and notifies the customer daily for
any small changes in their credit report. This intense monitoring of one抯 credit report is essential in protecting yourself
from identity theft. Without identity theft insurance , you can not fully prevent yourself from becoming a target of
identity theft.
One common misconception people have is that identity theft insurance is a service that keeps them from having to
personally monitor their bank statements and credit report. Most customers are left with a false sense of security and
may feel that once they acquire identity theft insurance , all possibilities of identity theft are out of the question.
Sadly, but truthfully, identity theft insurance does not do everything for you. Even though identity theft insurance is a
good service to have, it can not monitor personal bank statements and debit card transactions. Most identity thefts happen
through bank accounts and illegal debit card use. It's important to keep in mind that identity theft insurance only covers
clients in cases of credit fraud. These polices won't help if someone uses your identity for tax purposes or to acquire a
loan.
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