Most social insurance programs pay benefits that are based on:

Question

Quizplus · Accepted Answer

Most social insurance programs, such as Social Security and unemployment insurance, pay benefits based on the individual's past earnings history and/or contributions made to the system over time. This is because social insurance programs are designed to provide a safety net to protect individuals from economic risks and shocks, such as unemployment or retirement, that can disrupt their income and financial stability. Family size and severity of negative outcome may be factors that are considered in certain programs, but they are not the primary basis for determining benefit amounts. Premium paid for insurance is relevant for private insurance programs, but not for social insurance programs which are generally funded through taxes or contributions from employers and employees.

Most Social Insurance Programs Pay Benefits That Are Based On