What is social insurance?
Social insurance is, according to the dictionary, any insurance program provided or authorized by the government to provide financial assistance to people in need, such as unemployed, sick, disabled or older. People sometimes go through difficult times, especially when the economy is down and jobs is difficult to find. There are also accidents and may cause a person to be unable to find gainful employment and support themselves and their families.
Responsibility for the care of people who come into difficult times is the government. It was that families were responsible, but many people have no families or are separated from them, or their families may also be unable to support them. Families themselves may need help, for example, when the breadwinner dies, loses work, or can no longer work because of physical handicap. The government must therefore enter and do so by providing social insurance. In the United States, these government programs that provide social insurance; Social AdministrationHo security, Medicare, Pension Benefit Guarantors Corporation (PBGC) and retirement retirement program.
One type of social insurance offers a social security system that is the main component and probably the best known in the list. It is financed from compulsory, government taxes. It provides four main advantages that are collectible in retirement or old age, disability, survival or addiction and death. The social security system occupies the largest piece of federal budget, almost 21%. Another 20% of the federal budget is assigned to Medicare, another form of social insurance.
Medicare provides health benefits for older and sick or disabled individuals who meet certain criteria and are another form of social insanes. Advantages generally include the cost of hospitalization, medical procedures and prescription medicines. Meanwhile PBGC encourages citizens, andwould apply for voluntary pension plans to enjoy pension benefits in their lives later. It is not financed from tax revenues, but especially from insurance and investment income. The Railroad Retirement program is supervised by the US Railway Pension Council (RRB) and provides the benefits of retirement for railway workers and their families.
In addition to these Federal Government insurance programs, there are also state insurance programs for the unemployed. Social insurance differs from private insurance, which is largely voluntary insurance for which the person pays, and if the benefits are given reasonable to the amount of insurance. Unlike private insurance, access to social insurance is compulsory and based on legal rights and humanitarian considerations, Rather than on the insurance contract.