Social insurance

Social insurance is a concept where the government intervenes in the insurance market to ensure that a group of individuals are insured or protected against the risk of any emergencies that lead to financial problems. This is done through a process where individuals' claims are partly dependent on their contributions, which can be considered as insurance premium to create a common fund out of which the individuals are then paid benefits in the future.[1][2]

Social Security Expenditure and Inflation from 2013 - 2019 in the U.S
Social Security Contributions in OECD countries.

Examples of social insurance include: