This provides an ID reader, typically configured for handheld operation, which integrates three types of illumination into a compact package that generates robust performance and resistance to harsh environmental conditions, such as dust and moisture. These illumination types include, direct (diffuse) light, low-angle light and polarized light. The ID reader includes a sealed reader module assembly having the illuminators in combination with an imager assembly (optics and image sensor) at its relative center. Additionally, also an on-axis aimer and a variable focus system with liquid lens have been integrated in this module and is placed on axis using a mirror assembly that includes a dichroic filter. As the optimal distance to read a code with low-angle light is typically shorter than the optimal distance to use the polarized illumination a variable (e.g. liquid) lens can adjust the focus of the reader to the optimal distance for the selected illumination.