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Definition of a Social Insurance Program

Social insurance programs are considered to be compulsory, contributory government programs which provide benefits to a category of people who meet specified eligibility requirements and participate in the program's financing. Social insurance programs are public insurance programs which protect against various economic risks such as loss of income due to sickness, old age, unemployment, due to injury on the job or death of a family breadwinner or a disability that makes it impossible for an employee to work. For all these conditions people can rely on help from social insurance programs which are financed by workers and employees. Social insurance programs include:

Social security disability insurance program pays benefits to retired and disabled workers and their families.

Supplemental security income provides monthly payments to people with low income who are disabled, blind or over 65. This program is designed to cover basic needs such as housing, clothing, and food.

Madicaid is an insurance program which pays for medical care for low-income people.

Madicare is a health insurance component of the social insurance system which is accessible for people who are disabled, blind or over 65. Madicare offers a Prescription drug benefit that could help pay for medications.