Social Insurance
Social insurance is a government program designed to provide financial support to individuals in times of need, such as during unemployment, disability, or retirement. It typically involves mandatory contributions from workers and employers, which create a pooled fund. This fund helps eligible individuals receive benefits, like unemployment compensation or Social Security payments. The goal of social insurance is to protect citizens from economic hardships and to promote social welfare by ensuring a basic standard of living for everyone, especially during challenging life events. It plays a crucial role in maintaining economic stability and reducing poverty.
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Social insurance is a government program designed to provide financial support to individuals during times of need, such as retirement, disability, or unemployment. It is funded through payroll taxes, where workers and employers contribute a portion of earnings. This system helps ensure that people have access to income and essential services when they face challenges like job loss, illness, or aging. Examples of social insurance programs include Social Security, Medicare, and unemployment insurance. Ultimately, social insurance aims to promote economic stability and protect individuals and families from unforeseen hardships.