Massachusetts State Life Insurance Practice Exam

What was the primary purpose of establishing Social Security?

1. To provide unemployment benefits exclusively.

2. To support individuals during economic hardships.

3. To fund retirement plans for all citizens.

4. To offer tax relief for low-income families.

The correct answer is: To support individuals during economic hardships.

The establishment of Social Security primarily aimed to provide a safety net for individuals facing economic hardships, particularly during times of financial crisis. This program was designed to assist those who are retired, disabled, or otherwise unable to earn a sufficient income. By offering financial support, Social Security serves to reduce poverty and ensure a basic standard of living for citizens during challenging times, thus fulfilling its role as a social insurance program. The other choices, while they touch on related topics, do not encapsulate the main purpose of Social Security. Unemployment benefits, while a component of the broader social safety net, were not the exclusive focus of Social Security. Similarly, while Social Security does contribute to funding retirement for many, it encompasses a wider range of support beyond just retirement plans. Offering tax relief for low-income families is also not a direct purpose of Social Security, as its primary mechanism is the provision of direct financial assistance rather than tax adjustments.