What is the purpose of social insurance?

According to the legislation, social insurance is a social security system which is jointly funded by workers and their work units or communities and the state, helping workers and their relatives to prevent income from being interrupted, reduced and lost when they encounter risks such as old age, illness, work injury, maternity and unemployment, and ensuring their basic living needs. The concept of social insurance includes four meanings: the membership of social insurance system is determined by legislation, that is, every worker within the scope of legislation must participate in social insurance. Therefore, social insurance has certain legislative compulsion. Social insurance emphasizes individual contributions. This kind of donation is similar to the insurance premium of commercial insurance in form, but the payment of social insurance is entirely based on self-help and mutual assistance. Workers who participate in the social insurance system obtain membership by paying fees, so there is a saying that "obligations are fulfilled first, then rights are enjoyed". At the same time, such rights and obligations are equal, that is, equal opportunities. When encountering various risks within the statutory scope, members participating in the social insurance system can get allowances to ensure their basic living needs. Social insurance emphasizes the joint contribution of workers, their work units and the state. It embodies the responsibility of the state and society to provide basic living security for workers. It is paid by the employee's work unit, which avoids the single source of social insurance funds and increases the insurance coefficient of the social insurance system itself. With the participation of the state, the social insurance system has a strong backing. The "guarantee" of social insurance has the meaning of active prevention, which plays a preventive role in the risks within the statutory scope, so that members participating in the social insurance system can gain a sense of psychological security, thus reflecting the role of the social security stability mechanism. To sum up, we can sum up six characteristics of social insurance: ① Mandatory organizational form: restricted by legislation, compulsory participation; (2) Self-help in the personal sense: fulfill obligations first, and then enjoy rights; ③ Mutual assistance in the collective sense: mutual assistance to solve urgent needs; (4) Diversified sources of funds: tripartite financing with reliable sources; ⑤ Preventive use of funds: risk prevention and strong sense of security; ⑥ Fund management reserve: It has a long history of accumulation. "Five insurances and one gold", namely: endowment insurance, medical insurance, unemployment insurance, maternity insurance and industrial injury insurance; One gold is: housing provident fund. For employees, the provident fund is the "housing provident fund"; Specific units and individuals each bear 50%, calculated according to the average annual salary of individuals. The state stipulates that the housing accumulation fund shall not be less than 10% of the salary, and the units with good benefits may be higher, and the employees and units shall bear 50% respectively. Therefore, it is very cost-effective to pay housing provident fund for employees! "In terms of' five risks', the sharing ratio between units and individuals is generally: pension insurance units bear 20%, and individuals bear 8%; 6% for medical insurance units and 2% for individuals; Unemployment insurance unit 2%, individual1%; 1% maternity insurance shall be borne by the unit; 0.8% of work-related injury insurance is also borne by the unit, and individual employees do not bear maternity and work-related injury insurance. In terms of content, social insurance refers to a security system with workers as the protection object, special events such as old age, illness, disability, unemployment and death as the protection content, and characterized by government coercion. Characteristics of social insurance Social insurance and commercial insurance are two different forms of insurance. We divide insurance into social insurance and commercial insurance on the basis of profit. Whether it is profitable or not is the most important sign to distinguish these two kinds of insurance, but if we make a detailed analysis, there are still many differences between them. The characteristics of social insurance can be seen from the comparison between social insurance and commercial insurance. 1. Not for profit. Social insurance is non-profit insurance, not for profit, but for the implementation of social policies. Although the operation of social insurance also needs the help of accurate measurement means, the selection and guarantee level of social insurance projects cannot be determined by the level of economic benefits. If the financial deficit of social insurance affects its operation. The state finance bears the ultimate responsibility. Commercial insurance is financially independent and self-financing, and the state finance should not bear its expenses in any form. 2. Mandatory. Social insurance is compulsory. The so-called coercion means that the state enforces it through legislation, and both individual workers and their units must participate in it in accordance with the provisions of the law. The payment standard, treatment items and payment standard of social insurance shall be uniformly stipulated by the laws and regulations of the state or local government. As the insured, individual workers have no right to choose and change whether to participate in social insurance, the items they participate in and the standard of treatment. Compulsory is the guarantee of implementing social insurance. Only in this way can we ensure the reliable source of social insurance funds. Commercial insurance is voluntary, and whoever takes out the insurance shall take out the insurance; The principle of no insurance. The design of insurance, the payment of premium, the length of insurance period, the size of insurance liability and the relationship between rights and obligations are all implemented in accordance with the provisions of the insurance contract. Once the contract is terminated, the insurance liability will be automatically eliminated. 3. Universal security. Social insurance has a universal responsibility to protect members of society. Regardless of the age, years of employment, income level and health status of the insured, once the insured loses the ability to work or loses his job, the government will provide compensation for income loss according to law to ensure his basic living needs. In addition to cash payment, social insurance usually provides services for workers such as medical treatment, disability rehabilitation, vocational training and introduction, and activities for the elderly. Ensuring the basic needs of most workers and thus stabilizing social order can be said to be the fundamental purpose of implementing social insurance. Commercial insurance only provides equal economic compensation to the insured. It can only partially solve the temporary and urgent difficulties of the insured and make up for part of its losses. It does not have the function of universal protection, nor does it have the function of adjusting income level and maintaining social equity. 4. Basic equivalence of rights and obligations. The payment of social insurance benefits is generally not directly related to individual labor contribution. Enjoy and contribute, but their enjoyment and contribution are not exactly the same. To make an image metaphor, this is called planting trees to enjoy the cool, but people who plant big trees do not necessarily occupy the cool of big trees. There is a problem of redistribution. The principle of social insurance distribution system is to benefit the low-income class. Because of the same risk accidents, the threat to low-income workers is usually higher than that to high-income workers. Commercial insurance strictly follows the principle of equality of rights and obligations. This principle determines that the enjoyment of the rights of the insured is based on the premise of "more investment and more insurance, less investment and less insurance, no investment and no insurance". In other words, the amount of insurance enjoyed by the insured depends on whether the insured pays the premiums stipulated in the contract on time and in quantity and the length of the insurance period. Once the insurance contract expires, the insurance liability will automatically terminate, and the relationship between rights and obligations will no longer exist.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.