Identity Theft Insurance: What is it and How it works?

Human beings are rational animals. We have the power to think, strategize and create such things which can really change the whole functioning of the society and the world as a whole. But beware of few such animals who never think twice before locking up their rationality in their cupboard. Hence they are only “animals” or if the term is too harsh, you can call them “Identity Thieves”. Friends, no need to lock your doors as they will not infiltrate into your home directly, instead they follow a cowardly approach of stealing personal information like social security number, credit card number or any information which is valuable to you , through the misuse of technology. So it’s a real problem as you don’t know where they are and who they are. But apart from being rational, we are smart too.That’s why we are humans and we have managed to device an excellent weapon to kill this non-violent yet dangerous crime. The weapon is THE IDENTITY THEFT INSURANCE.A recent study conducted by the Federal Trade commission revealed that in 2005, around 8.3 million Americans fell victim of identity theft and the thieves accumulated around $6000 worth goods and services from just 10% of the victims. Besides 56% of the victims were unable to give any information as they were clueless. In majority of the cases credit card and debit card numbers were stolen. But thanks to IDENTITY THEFT INSURANCE which will not only cover you, but will also protect you from possible threats.

How it Works?

If you want to buy an Identity Theft Insurance policy then you can buy individual plan as well as family plans. In an individual plan the yearly premium is around $70 to $75 and for family plans the premium amount is around $140 to $150. One can also opt for a monthly premium scheme.

Besides, the policies have various preventive schemes and under these schemes regular alerts, newsletters on identity theft prevention tips by experts are sent to to the policy holders. This creates an environment of alertness which subsequently lowers the risk of frauds and misuse of personal information.

After purchasing the policy if someone fall victim of identity theft then there are experts who take care of the whole recovery process. There are specially appointed recovery advocates who handles all the disputes regarding the recovery. Besides, these experts work on civil and criminal judgment issues and provide necessary information to the Federal Trade Commission to solve the case more quickly and save time of the victim.

Under the reimbursement programme individual and family policy holders can be reimbursed up to a theft of $20,000, inclusive of the fees and costs involved in the recovery process.

I think that Prevention is always better than cure and trust me such an insurance for you and your family will prevent you from many threats which may be you are unaware of.