Social Security was designed to protect against which of the following?

Study for the Life and Annuity License Exam. Review detailed questions with explanations, assess understanding with quizzes. Prepare for your exam and succeed!

The correct answer to the question about what Social Security was designed to protect against is not D. Instead, Social Security was established to provide financial support in various circumstances where individuals might face economic difficulties, particularly in old age, disability, or in the event of premature death of a breadwinner.

Social Security provides Old-Age, Survivors, and Disability Insurance (OASDI). The program essentially supports individuals who can no longer work due to age or disability, as well as providing financial benefits to the family members of deceased workers.

Disability coverage ensures that individuals who become disabled and cannot work can still receive income. For elderly citizens, Social Security offers a financial safety net during retirement, addressing the risk of poverty in old age. The system also addresses the unfortunate event of premature death by providing survivors' benefits, which help the dependents of deceased workers manage financially.

The focus of Social Security is more about providing income stability during periods of loss, whether due to health issues, age, or unexpected death of a wage earner. Therefore, linking Social Security to bad investment choices does not align with its primary purpose or design.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy