John Doe is a husband and many times a father. He is self-employed in a high risk job. He is worried about his family in the event of his inability to provide for them. He refuses to register and contribute to Social Security, but goes in search of a life insurance on himself with his family as beneficiaries.
When asked why he refuses the promise of Social Security, he told me that Social Security steals people’s money – except that he did not say it so nicely. So in this article, let us examine his options to determine his best course of action.
Social security is an income replacement system. It replaces your income when you are unable to earn a wage by virtue of old age, sickness, invalidity, pregnancy; and helps with the funerals too. Social Security also provides for spouses, whether the spouse is a married one or a 3-year common law one.
In other words, while John is alive, Social Security helps him to be The Man. He is there for his family, stabilizing the unit by his presence and providing for their needs. He is there to love them, to guide his sons and to protect his womenfolk. When he dies, if he dies before them, he can still continue to provide for them through our survivors benefit programme.
To become insured, Social Security does not require John to be healthy and is not overly concerned about his age, it simply requires him to be working. Also, if John’s premium to Social Security lapses, he does not lose all of his benefits and he can pick up where he left off when his fortune changes back. If he becomes sick while working, he still gains credit towards that all important pension for himself and possibly for his spouse, dependent children and dependent parents, even as Social Security pays him his sickness benefit.
The other type of insurance that he was in search of may require him to be in good – if not great – health, prefers him to be younger than he is now and is definitely unconcerned whether he is working or not. Here, the payout becomes a trade off – your money or your life! Tough choice indeed! With Social Security it becomes your money and your life!! While life insurance has its place, I would argue that Social Security’s living insurance is better.
However, if I were John’s financial adviser, and if John wants to be a real hero to his family, I would advise him to build his foundation with Social Security and top-up with the purchase of a life insurance. That way, he would have the best of both worlds. Meanwhile, I am calling on all the Johns of the Federation to prepare for life and all the living that they have to do and which Social Security can help them to do.
Let’s talk more about the benefits of Social Security. Let’s talk about how we can make it better. Come to our public meetings and share your views face to face. Our next series of meetings will be on Wednesday 9th April at Estridge Primary School and Cayon Community Center in St. Kitts, and on the 10th in Nevis at Jessups New Testament Church Room and Dicks Bar, Bricklyn. Meetings start at 7 p.m.
Also, contact any member of the Reform Committee and any member of Staff. You can also visit our offices at Bay Road, Basseterre or Chapel Street, Nevis. Write us at P.O. Box 79; e-mail us at ssb.reform@socialsecurity.kn and our telephone numbers are 465-2535 and 469-5245. Share your views. They are important.
Committee members are Ms Patricia Claxton, Oscar Walters, Llewellyn Parris, Carlyle James, Mrs. Adina Taylor, Mrs Dianne Dunrod-Francis, Damion Hobson, Ambassador Roslyn Hazelle, Clifford Thomas, Eugene Hamilton with myself as Chairman.
