What is the main difference between commercial insurance and social insurance?

Commercial insurance is mainly the difference between life insurance and social security;

First, the business entities are different, and the business entities of life insurance must be commercial insurance companies. Social insurance can be handled by the government or its established institutions, and can also be entrusted to financial institutions such as fund companies, banks and insurance companies. Social insurance has administrative characteristics. In China, social insurance agencies are authorized by the Ministry of Labor and Social Security.

Second, the behavioral basis is different. Personal insurance is a civil act in accordance with the contract. The establishment of insurance relationship is embodied in the form of insurance contract, and the rights and obligations enjoyed by both parties are also based on insurance contract. Social insurance, on the other hand, is a government act implemented according to law, and the protection of social insurance is the basic right given to citizens or workers by the Constitution. In order to ensure the realization of this right, the state must promulgate social insurance laws and regulations and enforce them.

Third, the implementation methods are different. To conclude a life insurance contract, the principles of equality and mutual benefit, consensus and voluntary conclusion must be implemented. Except for a few types of insurance, most types of insurance have no mandatory provisions in law. On the other hand, social insurance is compulsory. All members of society within the scope of social insurance law must participate, and there is no choice. And those who refuse to pay or pay the insurance premium late without reason will be fined and even investigated for legal responsibility.

Fourth, the application principles are different. Life insurance reflects the contractual relationship between the two parties, and the rights and obligations of both parties are equal, that is, the insurer's liability for compensation and the liability for paying insurance benefits depend entirely on whether the insured pays insurance benefits and the amount paid. In other words, more investment and more insurance, less investment and less insurance, no investment and no insurance. Therefore, life insurance emphasizes the principle of "personal fairness". Social insurance, because it is related to the social and economic goals of the government, aims at implementing the national social policy and labor policy and emphasizes the principle of "social equity". The payment level of the insured is not closely related to the level of protection. In order to reflect the responsibility of the government, no matter how much the insured pays, the payment standard is the same in principle. Some people can get social insurance coverage without even paying insurance premiums.

Fifth, the safeguard function is different. The protection goal of life insurance is to pay insurance money for the damage caused by insurance accidents within the limit of insurance amount. This goal can meet the needs of people at all levels of life consumption, that is, by purchasing life insurance, survival, development and enjoyment can be guaranteed. The goal of social insurance is to protect the basic needs of social members, that is, survival needs, by paying social insurance premiums, so the level of protection is relatively low.

6. The premium burden is different. Paying the insurance premium is the basic obligation of the life insurance applicant. The insurance premium includes not only the expenses of death, disability and illness, but also the business and management expenses of the insurer, and the applicant must bear all of them. Therefore, the charging standard of life insurance is generally higher. The guarantee fee of social insurance is usually shared by individuals, enterprises and the government. As for the burden ratio of all parties, it varies with different projects and economic affordability.

Compared with social security, commercial insurance is your choice to pay, and social security is not enough. Commercial insurance is the pillar of social insurance and the supplement of social security. With commercial insurance, you can maintain your relatively high standard of living. Retirement pension is up to you, because it actually depends on how much you pay in the insurance company.