Most of us in Virginia have insurance for our homes, cars or businesses. We know life insurance is part of any good financial plan and health insurance can protect us from catastrophic medical bills. But there are a few other programs that we come in contact with - we don't usually think of these programs as insurance, but they are.
Social Security is a form of social insurance that began when Franklin D. Roosevelt was president. Its purpose was to improve poverty rates among senior citizens, which, during the Great Depression of the 1930s, exceeded 50 percent. Today, Social Security benefits people of all ages. In 2010, it functioned to lift over 20 million people out of poverty. Those people included: over 1 million children; over 5 million non-elderly adults; over 13 million adults over the age of 65. In that year, the poverty rate among senior citizens decreased from 44 percent to a mere 9 percent. If you haven't already benefitted from Social Security, chances are you will when you reach age 65.
Workers' Compensation is another form of social insurance that serves to protect working people from losing money due to injuries sustained on the job, which may cause them to have to miss work, sometimes for lengthy periods. If a construction worker, who relies on his job to feed his family, gets hurt while building a house, workers' compensation keeps his wages coming and covers his medical expenses, so neither he nor his loved ones will suffer unduly. In 2010, workers' compensation helped 128,000 people stay out of poverty.
Unemployment compensation insurance works to assist those who have lost their jobs and are actively seeking new employment. This form of social insurance makes a big difference in the lives of those who have been unexpectedly laid off, often due to the fact that many corporations are scaling down in order to cut costs. Unemployment insurance makes it possible for those who have lost their jobs to continue to eat, pay rent, and cover other living expenses while trying to get back into the workforce. You may be a stellar employee who does everything right, but if your employer can no longer afford to pay your salary and you are let go, it can be comforting to know you'll still have some money coming in until you land a new position elsewhere.
For more information, call or contact Wilson, Timmons & Wallerstein, Inc. today.