Two years ago I signed up for identity theft protection with Lifelock. It costs $9 a month. (The normal price is $10/month but I used the lifelock promo code to save a dollar.) In light of the recession, I’ve been scrutinizing all of my expenses to identify areas where I’m willing to cutback. After reducing my cable services, cutting out planned vacations, and eliminating daily smoothies I decided to take a hard look at Lifelock. At $9 a month, is Lifelock worth it?

After you signup, Lifelock has all 3 credit bureaus set fraud alerts on your behalf. As a result, if anyone attempts to open a line of credit in your name you’ll be contacted at the phone number you provide. Since fraud alerts only last for 90 days, Lifelock will continue to have the credit bureaus update your fraud alerts before they expire – resulting in permanent fraud alerts.

Annually, Lifelock will have a copy of your credit report sent to you from each credit bureau.

They remove your name from the mailing lists of pre-approved credit card and insurance offers. In effect, this reduces the amount of junk mail you receive.

If your wallet is ever lost or stolen, Lifelock will provide a representative to assist you in cancelling your affected accounts (credit cards, bank accounts, etc…). They will also provide assistance in completing the paperwork for a new driver’s license, social security card, credit/debit cards, checks, etc…

Through their identity monitoring package, Lifelock monitors known criminal websites for illegal selling or trading of your personal information. Additionally, if anyone sets up a new address with your name in any nationwide address database you’ll be notified. (This helps them to determine if a criminal may have changed your address to steal your mail and get your financial information.)

Finally, if your identity is stolen while you’re a customer, Lifelock will spend up to $1,000,000 to help clear your name. This includes paying for any legal, accounting, investigative, or other services needed to resolve the situation. Also, if you lose any money as a result of the identity theft, Lifelock will reimburse you.

Is Lifelock worth the money?

You can have the credit bureaus set fraud alerts, remove your name from pre-approved offers, and get a copy of your annual credit report for free – if you do the work yourself. Personally, I don’t feel like contacting all three credit bureaus every 90 days to reapply fraud alerts. I don’t want to spend loads of time getting my name removed from mailing lists, either. I consider the assistance with a lost/stolen wallet and identity monitoring package to be gravy. Those features don’t really sway me one way or the other. The $1,000,000 insurance policy is a definite plus, though.

I probably wouldn’t pay more than $15 – $20 a month for the identity protection that Lifelock offers but, at $9 a month it’s worth it to me. Within a couple months of signing up I noticed the amount of junk mail I received decreased dramatically. Also, it’s nice to have the peace of mind that I have fraud alerts on my credit reports and am insured in the event my identity is stolen.

If you’re interested in signing up for Lifelock, or for more information, you can click here or on the logo below. If you sign up for the monthly plan it will only cost you $9 per month. There’s a 10% off promo built into the links that knocks it down to those prices.