There has been a lot of controversy over Lifelock’s million dollar guarantee, and many people simply don’t have the facts on the issue. We have studied both sides of the argument and have written this article to explain how the million dollar guarantee works and what it DOES and DOES NOT cover. But for someone to just call Lifelock a scam because they don’t understand all the facts is just wrong.
Before we explain how the million dollar guarantee works it’s necessary to point out how few people have actually had to use it. In fact, only .01% of all Lifelock users have reported their identities stolen, and when you compare this with the 5% of Americans that have their ID’s stolen every year, it’s obvious that the company is doing something right.
So while the million dollar guarantee is nice, it’s even nicer to know that 99.9 percent of people who have Lifelock will never need it, and I really like those odds.
Subscribers cannot use the 1 million dollar guarantee as a lottery ticket
Lifelock has to have guidelines set in place to keep people from gaming the system. There are those who report bogus claims and then try to claim the 1 million, thinking they will strike it rich. Well first of all, you are never actually PAID the million dollars directly. It is used to clear your good name by paying for lawyers, clerks, and other agencies to help get your life back together.
It is a common misconception that if you have your ID stolen you will automatically become a millionaire over night because of Lifelock’s guarantee. Can you imagine how many people would game the system if this were actually true? This is why each claim must be verified by Lifelock to make sure that the claims are not some kind of fraud committed by the subscriber.
Once someone knows they have had their identities compromised they must contact Lifelock with 30 days to get their claim processed. It might take a few days to verify the claim’s legitimacy, but once the claim is verified Lifelock starts going to work immediately. A recovery specialist contacts the ID theft victim and works on behalf of the victim to fill out the proper forms and take the proper steps to get the Lifelock subscriber’s life back together. Lifelock has a great track record of getting most of these cases solved within 30 days once the million dollar guarantee has been activated.
There are some steps that a victim will have to take themselves once the million dollar guarantee has been activated, though. A victim is required to file a police report since ID theft is a crime, and they must also work with the recovery specialist to notarize forms, sign documents, and fill out applications. These forms are to help re-establish credit scores and cancel and replace driver’s licenses, passports, and credit cards. Having someone help you go through all of these steps is a huge help and a major reason that people sign up with Lifelock in the first place.
But Lifelock’s 1 million guarantee will not pay for anything outside of getting your ID back. It will not pay for lost wages while you are out of work trying to restore your identity. It will also not pay for any notary public fees or expenses that are a direct result of your identity theft. But here is why that is not really a bad thing:
Most of the time you NEVER have to pay for any fraudulent uses of your credit anyway. Critics of Lifelock’s million dollar claims forget this point. If an identity thief uses your credit card or identity to buy something you simply report it and you never have to pay for it. It would be nonsense if Lifelock had to pay for something that a subscriber would never have to pay for in the first place. But this is also why you need to report any instances of ID theft.
After studying over the details of the million dollar guarantee from Lifelock , it is clear that the company offers much more than critics like to point out. There is a reason that it is the number one name in identity theft protection, and anyone who signs up with Lifelock with the 10% discount will automatically have the protection of that million dollar guarantee as well.