The potential monetary loss, legal fees, and stress caused by your identity being stolen can impact your life and stability in a significant way. In a time when personal information is so vulnerable, it makes sense to set yourself up with protection for the worst case scenario.
An Identity Theft policy reimburses the policyholder for money spent on reclaiming and repairing their financial identities and credit rating. These costs often include legal assistance, phone bills, and office expenses that can lead to thousands of dollars.
Identity theft insurance provides restoration services in the event your identity is stolen and provides coverage to pay for many of the expenses incurred from resolving the breech, unlike identify theft protection.
Identity theft occurs when someone steals your personal information in an attempt to commit fraud. An identity thief will typically open credit cards or lines of credit, file taxes, or get medical services in your name without your knowledge. These activities will damage your credit and cost you time and money to rectify.
Unlike the coverage offered by many financial institutions, identity theft coverage pays for you to recover your identity (including a case manager or consumer fraud specialist) which is the long-term effect of this crime. Your financial institution can quickly recoup any monies you may have lost within a few days once your bank or credit card company are notified in most instances.