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The Difference Between Social Security and Private Insurance Is

Question 26

Multiple Choice

The difference between Social Security and private insurance is:


A) private insurance is a pay-as-you-go system while Social Security is fully-funded.
B) private insurance is not indexed for inflation, while Social Security is.
C) private insurance benefits are subject to an earnings penalty, Social Security benefits are not.
D) private insurance benefits are treated more favorably in the tax code than Social Security benefits.

Correct Answer:

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