Which is better, social endowment insurance or commercial endowment insurance?

Social endowment insurance and commercial endowment insurance are two different kinds of insurance, with different meanings and purposes. The former is compulsory by the state, and the latter is voluntary purchase. There is no better way to put it. If conditions permit, both of them can better guarantee the quality of old-age life.

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I. Definition of social endowment insurance and commercial endowment insurance

Social endowment insurance is a social security system established to solve the problems caused by workers reaching the age stipulated by the state or losing their ability to work, and it is a national welfare policy. Commercial endowment insurance product information

Commercial insurance for the aged belongs to commercial insurance, which takes people's life or health as the insurance object. When the insured is old, retired or the insurance period expires, the insurance company will pay the insured pension according to the contract. As a compulsory asset reserve means, it helps people plan their future retirement life and increases the security for their future retirement life.

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Second, the difference between social endowment insurance and commercial endowment insurance

1, the behavior is different.

Social security is a government act, which is enforced by the state through legislation, and the cost will increase every year. Commercial insurance is a commercial activity with commercial nature, and its cost is generally fixed.

2. Different purposes

Social security is not for profit, but for ensuring the basic old-age life of workers, maintaining social stability and promoting economic development. The purpose of commercial insurance is to guarantee the retirement return of the insured on the basis of obtaining the return.

3. Different sources of funds

Social security is shared by the state, employers and individuals, but commercial endowment insurance is entirely borne by individuals. Social security cannot be exempted from fees, and seriously ill patients still need to pay social security; Commercial insurance has an exemption function, and under certain circumstances, the remaining expenses are paid by the insurance company. Social security is a basic right of citizens, and the government is fully responsible for social security; Commercial endowment insurance is restricted by market competition mechanism and supervised by the government according to law.