The social insurance programs are specifically designed to help the workers of the United States of America who are having setbacks and therefore impacting their earnings. This program was initiated by President Franklin D. Roosevelt in 1935 by issuing The Social Security Act of 1935 in order to protect Americans from what he said as vicissitudes of life. Here are the examples of social insurance programs.
OASDI
The first and most popular example of this government program is called OASDI which is short for Old-Age, Survivors and Disability Insurance. To those who are eligible, this program will give them monthly benefits that would replace their loss of income due to several reasons like disability, retirement and lastly death. OASDI protects almost every single job in America with the coverage rates of jobs at 96%.
This type of social insurance is so popular and widely known that most Americans don’t refer to it as OASDI anymore, instead they call it social security. This program is so important that almost all Americans, around 3 in 5 who are retired, are relying on this program for the amount of at least half of their previous income.
The OASDI or Social Security is not only protecting workers, but also their families. 98% of young children and also their mothers are eligible to get monthly benefits should their working parent as the breadwinner dies. In the case of possible disability, almost all workers in the age of 21-64 including their families are protected by the program.
Unemployment Insurance
One of the examples of social insurance programs is called unemployment insurance. This program is specifically designed to protect workers in the event of involuntary unemployment. But, in order to be eligible, a worker should be registered as an employee in a public office, still be able and available to work and has a certain amount of earnings and employment during a specified base of time.
If you want to know the amount of the benefits, there’s no exact answer to this since it depends on the formula used by the state, and also the amount of the previous earnings. All states in America get to decide the maximum amount of benefits that an eligible worker may receive.
Workers’ Compensation
The next example is the oldest type of insurance program in the United States which is called the workers’ compensation. It started in 1908 to protect certain civilian employees who were working in hazardous and dangerous working environments.
This program then became a pioneer in protecting workers. In 1911, several states enacted similar laws and then finally in 1949, all states in the United States of America have workers’ compensation programs to protect the workers who become disabled due to injury or illness that are work-related.
So there you go, those are the prime examples of social insurance programs in the USA. There’s also another one called temporary disability insurance only 5 states and Puerto Rico have it. If you want to find another news about insurance following this website https://elafm.org/.