HOW CAN I INSURE MYSELF AGAINST UNEMPLOYMENT?
I’d like to begin with one of the most important thing and answer to the following question: «How can I insure myself against unemployment? »
We all work to earn money, to enjoy our life and to help others. From the point of view of economy and insurance, money is the main stimulus for work. But if there is no work and no unemployment insurance policy, you live on the dole.
Different welfare programs aimed at helping people unable to support themselves fully or earn a living. Welfare generally refers to government programs that provide money, medical care, food, housing, and other necessities for needy people. People who receive welfare include children, the aged, the blind, the disabled, and others who cannot provide for themselves and their families. Government welfare programs are also called public assistance. Private charitable organizations such as the Salvation Army, also give welfare assistance. All nations have some kind of welfare. Public assistance benefits help many people who live below the poverty line.
Public assistance differs from another type of government financial aid called social insurance or social security. Social insurance programs are funded mainly by special payroll taxes on workers and their employers. Unlike welfare, social insurance programs provide benefits to people whether or not they are poor.
All developed nations maintain a variety of social welfare programs. Countries offer many such programs as rights of citizenship. Governments establish welfare systems to provide a so-called safety net to prevent people from suffering the effects of poverty. People on welfare in the US usually receive their payments in the form of a welfare check or giro.
There is much criticism of welfare programs. However, many people believe that welfare make its recipients dependent on government support. Some people criticize welfare programs for not providing high enough benefits to eliminate poverty. Welfare payments discourage its recipients from seeking employment, especially if they cannot get much more money from a job than they can get from benefits. Many people also criticize the welfare system for being too complex and costly to administer. Each program has its own requirements and ways of calculating benefits.
In most European countries the government provides free medical and hospital care family allowances and retirement pensions. The programs in some countries are so complete that they are said to be welfare states.
The Unemployment Compensation program provides monetary support for people who have lost jobs. State financing and benefit laws vary widely. In general, unemployment compensation benefits under state laws are intended to replace about 50 percent of the wages previously earned by a worker.
Most eligible individuals can start receiving partial old-age benefits at age 65. Medicare health insurance for the elderly is split into two parts, hospital insurance and supplementary medical insurance. Medicare hospital insurance pays for inpatient hospital services, nursing home and hospice care, and home health services. Financing for this part of Medicare comes for the most part from payroll taxes. Medicare medical insurance provided for aged and disabled people.
Many governments are trying to reduce or cut welfare spending. Some are demanding that people on welfare should work in return for their benefits: this is called workfare. Others are trying to limit welfare spending, but some politicians want to dismantle the welfare state completely. Politicians say that another way of cutting back on welfare spending is to crack down on scroungers, people who are getting unemployment benefit but shouldn’t be getting it, because they have a job or because they are not willing to work.