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No. of Recommendations: 5
Certainly most people do not get their life insurance or health insurance premiums back.

What is different about social security?

You are not illustrating an apples to apples comparison.

The core of SS is not like a form of insurance. It is more like a pension plan. SSDI is a form of insurance.

If someone lost their pension plan or earned less from it than they paid in, you could bet people would not be overly excited about their pension program.

If you want to compare this to insurance, then:

1. Life insurance does provide a specified return to either the owner or the beneficiary. People (or their estate or their benes) do indeed get their life insurance back, and usually a lot more, if it is something other than term life - but even then some term life now comes with...

2. Guaranteed Return of Premium is a way to structure a policy to return every dollar you invested.

All else being equal, SS should provide a guarantee return of premium to the estate or the benes. It is extremely unfortunate that some people pay into SS all their lives and their spouse or their kids lose out on all that lost wealth because of the early death of the contributor.

If this money is REALLY being invested then there is absolutely no reason or justification for someone (or their estate) not at least getting back what they put in.

Note my position has nothing to do with private accounts or investing SS in the stock market or with ending SS, but if we are going to have it, we shouldn't have a system that isn't often regressive for those that need it the most.
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