Question

Discuss the basic concept of social insurance as provided by Social Security programs. Please conduct research to support your findings, citing at least one scholarly resource in APA format.

Answer 1

The largest expenditure which is resulted in the federal budget is in the form of social insurance programs. Social insurance can be seen as the combination of different insurance plans which is mainly managed by the government. As in the case of private insurance case, some specific benefits are provided on the occurrence of a certain event, the same process is used in case of social insurance. For instance, if a person becomes jobless, then she can get some benefits if she is having unemployment insurance. Just as in case of private insurance, only those individuals receive the coverage who pay a certain sum similarly in case of social insurance programs, only those people will be covered who contribute to the plan on regular basis. In the United States, these social insurance plans are funded with the help of payroll taxes.

DeWitt stated that the main philosophy of social insurance is that the central fund is contributed by the beneficiaries of this plan and these funds are then managed by the federal government and the fund accumulated is used to facilitate the income to those individuals when they are not able to sustain themselves financially. The main objective of the social security program was to provide support to those people who are unemployed without their own mistakes and with the help of a social security program, they can support their families. Thus there is a close connection between the social insurance and social security plan as supporting the financial feasibility of the manpower when they are unemployed for a certain period of time or face some job related injuries so that the health of the overall economy can be supported and facilitates some of the business organization to keep on practicing in the business.

Reference:-

Kagan, J. (2019, January 14). Social Security. Retrieved from Investopedia/terms/s/socialsecurity