Social Insurance: Definitipon
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| Social insurace example |
In principle, can be divided into social insurance and individual insurance. The Social Security in this case represents an existential basic protection, which is mandatory for most citizens.
Social insurance is a set of legally defined insurance that cover typical and frequent life risks and thus form a social network. For most people there is compulsory insurance. Whoever is not insurance, may take out voluntary insurance. Most do well: About 90 percent of people in Germany are covered by social insurance.
Social insurance consists of five classes of insurance:
The statutory health insurance will pay medical expenses and loss of income for diseases and injuries.
The social care derives financial support for long-term care.
The statutory pension insurance provides financial security in old age, after the end of occupation.
The statutory accident insurance pays medical expenses for accidents at work and occupational diseases.
Unemployment insurance provides financial bridging unemployment.
Object of social insurance is to hedge the income and thus the livelihood of the insured primarily. It is designed to maintain health and working capacity of their insured as long and far as possible, restore them when necessary, and to replace the livelihood in case of failure.
The social security agencies are public bodies, which admittedly can manage, but are under government supervision.
The individual social security branches are practically "national insurance". For all those insured the same contribution rates, which are laid down by law shall apply. The contribution amount is income-tested, it is in each case a percentage of gross income. Workers only need to pay a portion of their contribution rates, the other part pays her employer.
All insured persons are entitled to the same benefits of the individual branches of social insurance. The range of services is extensive, but not luxurious. Most social security schemes pay minimum necessary services - provide a basic social safety net for even moderate contributions.
Social insurance is a set of legally defined insurance that cover typical and frequent life risks and thus form a social network. For most people there is compulsory insurance. Whoever is not insurance, may take out voluntary insurance. Most do well: About 90 percent of people in Germany are covered by social insurance.
Social insurance consists of five classes of insurance:
The statutory health insurance will pay medical expenses and loss of income for diseases and injuries.
The social care derives financial support for long-term care.
The statutory pension insurance provides financial security in old age, after the end of occupation.
The statutory accident insurance pays medical expenses for accidents at work and occupational diseases.
Unemployment insurance provides financial bridging unemployment.
Object of social insurance is to hedge the income and thus the livelihood of the insured primarily. It is designed to maintain health and working capacity of their insured as long and far as possible, restore them when necessary, and to replace the livelihood in case of failure.
The social security agencies are public bodies, which admittedly can manage, but are under government supervision.
The individual social security branches are practically "national insurance". For all those insured the same contribution rates, which are laid down by law shall apply. The contribution amount is income-tested, it is in each case a percentage of gross income. Workers only need to pay a portion of their contribution rates, the other part pays her employer.
All insured persons are entitled to the same benefits of the individual branches of social insurance. The range of services is extensive, but not luxurious. Most social security schemes pay minimum necessary services - provide a basic social safety net for even moderate contributions.
Social Insurance: Definitipon
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