Function and significance of endowment insurance for urban and rural residents

Legal analysis: 1, which can guarantee the basic life after old age and realize a sense of security.

The function of endowment insurance is mainly to provide a reliable source of income for the elderly in their later years and meet their living needs. But it is very common that even with old-age insurance, it can't achieve the guarantee effect. The role of basic old-age insurance is limited. Once a serious illness or accident occurs, it is difficult for the basic old-age insurance to solve the problem of economic pressure. So if you have the conditions, you can generally buy some commercial endowment insurance. It can play a necessary supplementary role to the basic old-age insurance.

2. Reduce the burden of raising children.

From the point of view of families and individuals, individuals participating in old-age insurance, through the combination of compulsory payment and national independent support, can provide protection for the elderly to a certain extent, alleviate the worries of families, and reduce the double pressure of children raising the elderly and children, which has a positive impact on the elderly and the whole family.

Step 3 increase income

Social endowment insurance, whether it is enterprise employee endowment insurance or urban and rural residents endowment insurance, the level of payment is directly related to the level of treatment, that is, "pay more and get more". The higher the payment base, the longer the payment period and the higher the corresponding treatment, which is a basic principle that social endowment insurance must follow. Take the basic old-age insurance for enterprise employees as an example. Pension consists of personal account pension and basic pension. After paying 15 years, the basic pension benefits will increase by one percentage point for each year. Personal accounts are composed of individual contributions. The more the account balance, the higher the pension when you retire. Even if the money in the personal account is used up, as long as the insured person is still alive, the state will continue to pay according to the previous standards.

4. Promote social harmony and stability.

Old-age insurance provides basic living security for the elderly and enables them to have a sense of security. With the arrival of the aging population, the proportion of the elderly population is increasing and the number is increasing. Old-age insurance guarantees the basic life of elderly workers, which is equivalent to ensuring the basic life of a considerable number of people in society. For on-the-job employees, participating in endowment insurance means that they have expectations for their future old-age life and are free from worries. In terms of social mentality, more people are stable and less impetuous, which is conducive to social stability.

Legal basis: Article 16 of the Social Insurance Law of People's Republic of China (PRC) stipulates that individuals who have participated in the basic old-age insurance will receive the basic old-age pension on a monthly basis if they have accumulated contributions for fifteen years when they reach the statutory retirement age. Individuals who participate in the basic old-age insurance can pay less than 15 years when they reach the statutory retirement age. You can receive the basic pension on a monthly basis and transfer it to the new rural social endowment insurance or urban residents' social endowment insurance, and enjoy the corresponding pension insurance benefits according to the regulations of the State Council.