Alexander, age 42, and Susan, age 39, are married and live in small house. They have three children-2-year old Sam, 10-year old Alan, and 20-year-old Jane. Alexander is employed as an engineer with international company and earns $75,000 a year. Susan works part- time job as a home health aid worker with compensa- tion $15,000 a year. They purchased their home 7 years ago for $250,000 and are currently paying off the mortgage. They also have $15,000 in savings.

Answer the following questions. Compare a situations where (1) both Alexander and Susan are both fully OASDI insured with a situation where (2) neither Alexander nor Susan are OASDI insured.

Discuss the effect of social insurance on the stability of family. Treat each situation separately.

a. Alexander was fatally injured in a non-work related accident. To what extent does this situation affect the family budget?

b. Jane is seriously injured in non-work related acci- dent. As a result she is disabled. To what extent does this situation affect the family budget?

c. Alexander's position is outsourced and he is unem- ployed. Alexander has unemployment insurance. To what extent does this situation affect the family budget?

d. Discuss the social system applied in your state/coun- try and the effect of social insurance on the stability of family in case of the situations mentioned in (a), (b) and (c).