Do I need private insurance if I have social security?

Social security is the main social assistance program in the country. When he started in the 1930s, his initial idea was to provide limited help to a small percentage of the population; just over 53,000 people shared $ 1.3 million in benefits in 1937. Currently, more than 59 million people a year receive some form of help from the Social Security Administration, the agency that administers the program. Last year that aid reached nearly $ 700 billion, making US Social Security the largest government program in the world.

What is social security?

Social security is made up of various aid programs. The main program is called the Old-Age, Survivors and Disability Insurance Program, or OASDI. OASDI provides financial assistance to the elderly, widowers and widowers, and people with disabilities. That’s where the vast majority of social security money goes. The other program is Supplemental Security Income or SSI for its acronym in English. SSI provides financial assistance to needy people over 65, people who are blind, and certain people with disabilities. SSI was created in 1974 and today nearly 7 million people receive SSI assistance, including 2.7 million who also receive OASDI assistance.

Do I need private insurance if I have social security?

Absolutely! Just because it is called “Social Security” does not mean that it is a magic wand that solves all our needs. And given the economic situation in the country, social security is likely to change dramatically over the next few decades. That is why young people with social security are making a serious mistake by not considering private insurance. Even if you have the social security program, you need private insurance because:

Social security is not health insurance

Having social security does not entitle you to medical care. There are other social programs such as Medicare and Medicaid that are governmental but those have their own requirements to qualify and it is not easy. The fact that you receive social security does not mean that you are guaranteed access to other programs.

Social Security offers a very limited benefit

One of the benefits of social security is that it offers small life insurance to qualified individuals who participate in the program. Depending on your age, you may be eligible with as little as 18 months of participation in the program (one participates by paying social security taxes). This life insurance pays money to your widower, your dependent children and in certain cases to your grandchildren, stepchildren and adopted children. Also, if you take care of your elderly parents they can qualify too. But what is the problem? The reality is that life here is very expensive and the benefits paid by Social Security are limited. The help comes in the form of a monthly direct deposit that may cover a portion of expenses, but does not replace the full salary you were earning. The less time you have been participating in the program,

Social security does not have long-term solvency

Financially, Social Security cannot survive much longer. The benefits that are paid exceed the premiums that come in. The more people qualify and the longer they live, the more financial pressure is placed on the program. Sooner or later the program has to change and this includes reducing the benefit received and making qualification more difficult.

Given this reality, it is concerning to know that for the 66% of the elderly who receive social security benefits, the monthly check represents most or all of their income.

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