As America’s fastest-growing crime, identity theft is a high-profile media topic. In fact, entire industries have recently evolved in response to this huge economic threat. Insurers have not hesitated to join the bandwagon with a novel innovation to a new-age problem: Identity theft insurance.

How ID Theft Insurance Works

Like other insurance products, identity theft coverage is a form of loss protection. Should disaster strike, homeowner and auto insurers restore your pre-loss financial position by funding the replacement or repair of your property.

Likewise, ID theft insurers offer economic restoration following compromise or misappropriation of your personal identity. Potential identity theft fallout includes credit ruination, bank account depletion, and even erroneous arrest. In addition, ID theft victims may sustain major indirect costs for legal fees, lost wages, and tarnished reputations.

Comparing Coverage Costs

Very keen competition exists among insurance carriers. Also, a growing number of mortgage and credit card companies now offer identity theft insurance. To make the best choice, look for the following features in any proposed policy:

• Deductible: Policies with exorbitant deductibles are usually unfeasible. Studies by the Identity Theft Resource Center reveal that victims incur average out-of-pocket costs of slightly over $800. A deductible in excess of this amount makes a policy impractical.

• Legal Expenses:Adverse litigation, wrongful arrest, and having to retain legal counsel are potential consequences of identity theft. Verify that attorney’s fees and court costs are included in the policy’s provisions.

• Denied Credit: Victims often do not even realize that an identity thief has targeted them until they are denied new credit. Ascertain that credit denials and negative credit file deletions are covered.

• Lost Wages: Lost income coverage is indispensable. The FTC estimates that ID theft victims spend an average of 320 hours on rectifying consequent problems. This equals two months’ pay for most people.

• Premium: Identity theft insurance premiums average about $20 monthly. Seek a quote from your present auto, life, or homeowner’s insurance carrier first. Odds are you will qualify for multiple coverage discounts that may essentially make the choice for you.

“Every cloud has a silver lining.” This adage is especially apt for Americans contemplating their Golden Years. The sun set years ago on lifetime employer-sponsored pensions. Contemporary horizons now loom with ever-present prospects of layoffs, cutbacks, and corporate downsizing.

A new day has definitely dawned in the realm of retirement planning. Shifting social, demographic and economic forces have affected major reverses in world financial markets. Consumer retirement expectations have changed accordingly.

Studies reveal that twenty percent of American workers are unsure of their retirement income source. Sixty-five percent of Americans endorse financial planning as a vital for retirement comfort and success. A mere 36 percent are actively doing anything about it, however.

This is unfortunate, as those who plan their retirements end up with an average of two-and-a-half times more retirement income than non-planners do. Their average net worth is also 39 percent greater than that of those who fail to plan.

Prospective retirees are increasingly attempting to bridge ever-widening gaps between long-held dreams and harsh economic realities. A recent renaissance of annuity investing has resulted from such frantic efforts toward fiscal reconciliation.

A Business Week article of June 1, 2011, revealed that this year’s first-quarter figures for variable annuity sales reflected a 24 percent increase over last year. The promises of lifetime income and a protective hedge against declines in other financial markets are purportedly the main prompters of this phenomenon.

Annuities are essentially life insurance contracts that feature a future income stream. Part of the annuitant’s premiums cover actual life insurance costs while excess funds are invested for long-term growth. Annuities are available in two basic types: fixed and variable.

With variable annuities, consumers may choose how to invest their funds. Conversely, fixed annuities allow no annuitant investment input but are less risky than variable annuities. Traditional fixed annuities offer a set rate of return for a specified period. Upon expiration of this “guarantee period,” a fixed annuity’s value may fluctuate, but will never fall below a preset minimum level.

Obtain competent expert advice before buying any annuity. Regardless of the annuity you ultimately choose, take pride in knowing that your decision represents the positive step of taking greater responsibility for your retirement.