The Relationship between Life Insurance and Social Security in China

China Life Insurance is a commercial insurance sales operation service organization approved by the China Insurance Regulatory Commission, which belongs to the category of commercial insurance. Social security is stipulated by national laws, and employers provide social security for workers.

Similarities between the two:

Both of them have certain insurance protection functions; Everyone needs to pay a certain fee to be insured.

The difference between the two:

1, with different properties:

Commercial insurance companies represented by China Life Insurance belong to commercial insurance and have the attributes of insurance industry. Social insurance is applicable to social enterprises and social organizations whose provisions are implemented by reference, and has the attributes of social labor and social security industry;

2. Different purposes:

Commercial insurance is for profit, but also for insurance risks; Social insurance takes social security as the starting point, not profit as the purpose;

3, the insurance principle is different:

The principle of commercial insurance participation is voluntary; The participation of social insurance has certain national policy compulsion-social enterprises must participate in insurance for their employees according to regulations.

Social security is not linked to China Life Insurance; The social security system and the China life declaration system are independent; It is possible for the social security fund to purchase China Life Insurance shares as an investment operation need to maintain and increase the value.