X hits on this document

Word document

Detail Outline for Exam 7 – 2007 Part C - page 1 / 28

76 views

0 shares

0 downloads

0 comments

1 / 28

Wiening, Personal Insurance (First Edition) – SK

Detail Outline for Exam 7 – 2007 Part C

Wiening, Personal Insurance (First Edition) – SK (We also have the book.)

Chapter 10. Personal Loss Exposures and Financial Planning

Social Security – OASDHI = Old-Age, Survivors, Disability, and Health Insurance program.  When only cash benefits are discussed, this is usually referred to as OASDI.  When Medicare is included, it’s OASDHI.

Basic Characteristics of OASDI

Compulsory Program – results in 2 advantages:

1) provides a base of financial security to the population.

2) controls adverse selection as all are covered.

Minimum Floor of Income

Emphasis on Social Adequacy – meant to provide a minimum standard of living to all beneficiaries.  The benefit formula is heavily weighted in favor of low-income groups, the aged, and people w/ large families.

Benefits Loosely Related to Earnings

Benefits Prescribed by Law

Financially Self-Supporting

Full Funding Unnecessary

No Means Test

Covered Occupations

Insured Status

Fully Insured – those who have 40 credits or worked full time for 10 years.

Currently Insured – those who earned at least 6 credits during last 13 calendar quarters.

Disability Insured – must be eligible as described below.

Types of Benefits

Retirement Benefits – full benefits payable at normal retirement age.

Cost-of-Living Adjustment

Early Retirement Age

Delayed Retirement Credit

Monthly Retirement Benefits

Survivor Benefits

Disability Income Benefits

Medicare Benefits

Summary

Document info
Document views76
Page views76
Page last viewedFri Dec 09 21:50:27 UTC 2016
Pages28
Paragraphs802
Words10822

Comments