Step 6 - Get Identity Theft Insurance

Get Identity Theft Insurance

Insurance is nothing new to you. You don't plan to get into a car accident but you take out car insurance just in case. You don't plan to see your house burn down, but you take out fire insureance just in case. You don't plan to get sick, but you take out health insurance just in case. Do you get the point? Of course you do. Somethings you just don't gamble with. Identity Thft Insurance is one more manadatory insurance you need to have. Don't gamble here either!

Can you imaginge your life after someone has stolen your identity and taken out loans and other debt obligations out in your name? It's a nightmare most people can't wake up from in time to save their financial lives and personal lives. Don't let this happen to you. Get Identity theft insurance.

Because you followed the steps from 1 to this 6th sdtep you have plenty of extra money you can put towards this insurance. This journey to debt freedom is a marathon. Stay focused and intense, and keep a steady pace. In 2014, the Consumer Sentinel Network reported identity theft as the number one concern, with identity fraudsters stealing approximately $16 billion from 12.7 million U.S. consumers. According to the Federal Trade Commission, identity theft has been the number one consumer complaint for 14-straight years. In order to ensure that your identity hasn’t been compromised, take a look at your credit report here for free.

Even if you have been lucky so far, there’s no certainty that you will remain so. In an unpredictable world, where identity theft is a growing concern, you need to protect yourself by taking proactive measures. Is identity theft insurance right for you? Let’s take a closer look:

What Does Identity Theft Insurance Cover?

Identity theft insurance providers operate differently than the conventional insurance providers. They do not, per se, reimburse you for the funds that you’ve lost; however, it does cover certain expenses that you may not be able to attend to at that moment.

In the instance that an individual falls victim, identity theft insurance may cover expenses that include phone bills, lost wages, notary and certified mailing costs, and in some cases, even attorney fees. That way, while you’re overcoming and dealing with the loss, your other expenses are covered for you. The insurance may also include credit alerts via emails or texts, account and credit monitoring services, and reimbursement for all the costs that are associated with the repair of your credit history.

Who Can Provide You This Insurance?

If you’re considering getting identity theft insurance, know that you have many options. There are many insurance agents, credit bureaus, identity theft protection companies, credit card issuers like banks and credit unions that offer this service. This identity theft insurance may cost you – the policyholder – anywhere between $25 and $60 per year.

How Does It Work?

The insurance company is responsible to reimburse you for all the expenses that you incur during the time of your identity theft. The coverage limit can range anywhere from $10,000 to $1 million, depending on the limits that are stated in the policy.

Some Things That You Should Consider

Before choosing an insurance company, here are some things that you should consider:

  • Ask the insurance company if they will assist you with the recovery work?
  • Understand the policy limits.
  • Find out if there is a deductible. There are some policies that may require you to approximately $100 - $500 in costs to reclaim your financial identity.
  • If the policy covers lost wages, ask your service provider what the limits are, and what is required to trigger this coverage.
  • If the policy covers legal fees, again, verify the limits

If you’ve followed the previous five steps in the 7 Baby Steps to Fix Bad Credit, then this step shouldn’t be a problem. You will have saved some money with the better management of the debt and budget. It would be a great decision if you decide to invest a small fraction in acquiring identity theft insurance.

Remember, your journey toward repairing your credit has been making incredible progress. Stay focused and intense, and keep a steady pace!


Some Ways to Get Started

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