Social Insurance
Social insurance is a combination of various government-sponsored insurance programs where the government is providing compensation to the elderly, disabled and unemployed people. There are various programs under the social insurance which helps in providing healthcare and monetary compensation where the government bodies create a list of people to be added under the program.
The social insurance programs help the list of people who are named under the elderly, disabled or unemployed are provided with medical and unemployment compensation where few doctors and hospitals visit these people for free. People who apply for these types of program tend to avoid these situations such as disability, old age or unemployment, therefore the application is only considered when the applicant has witnessed one of the mentioned situations.
Why was the Social Insurance program initiated?
With the change in lifestyle and with the increase in the cost of living, there is now a huge gap between the middle class and lower class. This has led to inequality towards various services which should also be considered as a basic right. There are various factors which can lead to injury or loss of life and not everyone can afford hospital and medical bills, and in some cases, there are people who haven’t visited the hospital in ages due to lack of money.
This program helps in providing equality in resources and helps in providing compensation to the ones who require it the most. As the financial crisis faced by a person is increasing these days, various types of social insurance have been introduced in the market which will help them gain equal services as the others. There is a network of doctors and hospitals who helps in providing free visits to the elderly or disabled person along with the ones who are unemployed. There are programs under social insurance where they help the unemployed men and women in restarting their life and career.
The programs under social insurance are being mostly funded by the taxes collected by the government bodies and by participants who have paid a premium for their future social insurance. Additional funds are also being provided by organisations as part of CSR (Corporate Social Responsibility) as all multi-national corporations are supposed to spend 20% of their profits in CSR. Some of the funds are also being retrieved as donations from the citizens of the country. Many people consider this type of insurance as a retirement savings plan as the amount of risk is low compared to personal insurance and helps in providing other people with benefits they have never received.
