Social Insurance Policies

Social insurance policies are government programs designed to provide financial protection to individuals against specific risks, such as unemployment, disability, or old age. These policies typically involve contributions from workers and employers, creating a pool of funds that can be accessed when individuals face hardships. Examples include Social Security, unemployment benefits, and Medicare. By pooling resources and sharing risks, social insurance aims to support people during tough times, ensuring a basic standard of living and promoting social stability, while also encouraging participation in the workforce.