The term 'social insurance' describes which of the following?

• A. Cash welfare programs based on need
• B. Private sector benefits
• C. Public housing subsidies
• D. Government-administered insurance programs not based on need

Answer: (D)

Social insurance is about government programs funded through workers’ payroll taxes that provide benefits based on a person’s own contributions and earnings history, not on current need. Because you pay into the system during your working years, you earn eligibility for benefits like retirement, disability, and unemployment, with benefit levels typically tied to your past earnings rather than your present income. Examples include Social Security, Medicare, and unemployment insurance. This differs from means-tested cash welfare or housing subsidies, which are based on current need and income, and from private-sector benefits, which aren’t government-administered. So the term describes government-administered insurance programs not based on need.