What about Disabilty and Death Benefits?

The current system provides disability payments to workers who become disabled and unable to work prior to retirement age. It also provides a death benefit of $225. Under some proposals for reform, disability benefits would continue to be provided through the trust fund. Death benefits would be provided through the ability to transfer one's retirement account to beneficiaries at death.

Another proposal would direct a portion of the funds allocated to the personal retirement account in the early working years to be used for the purchase of long-term disability insurance. This is relatively inexpensive insurance. Once an individual account was large enough to provide a secure source of funds to the worker and his/her family, the amount set aside could be eliminated and the funds used solely to fund the account. Likewise, life insurance could be purchased during the early working years.

Let's Save Social Security.