Why You Should Consider Buying Identity Theft Insurance - Black Enterprise
Black Enterprise Magazine January-March 2019 Issue

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In light of how widespread identity theft has become, it may be a good idea to purchase identity theft insurance.

Identity theft claims more than 10 million victims annually in the U.S. alone, according to the Federal Trade Commission.

Even children are often subjected to identity theft, leading the FTC to recent warn parents about the increased risk of their kids being targeted during back-to-school season.

And just last week, authorities broke up the largest ever identity theft ring ever nabbed. Officials in the greater New York City area arrested more than 100 individuals and charged them with perpetrating at least $13 million in identity theft and credit card fraud on unsuspecting consumers.

Fortunately, there is a way to protect yourself and your family — in part, at least — from the financial sting of identity theft.

A handful of insurance companies nationwide offer identity theft coverage, including State Farm, Farmers, Allstate and Nationwide. The cost to buy this insurance ranges from about $25 to $100 a year and coverage usually goes up to around $25,000.

Since the average victim of identity theft spends about 200 hours and $1,000 cleaning up the mess brought on by this heinous crime, identity theft insurance reimburses you for a range of things like attorney’s fees, phone bills, and time lost from your job.

Also, some credit monitoring services also include identity theft insurance coverage.

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Lynnette Khalfani-Cox

Lynnette Khalfani-Cox is co-founder of the free financial advice blog, AskTheMoneyCoach.com. Read her "Ask The Money Coach" column every Monday through Friday on BlackEnterprise.com and follow Lynnette on Twitter at @themoneycoach

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