Endowment insurance and annuity insurance

Annuity insurance refers to the supplementary pension insurance system that people voluntarily participate in on the basis of participating in social security pension insurance according to law; Endowment insurance is a social insurance system established and implemented by the state according to the provisions of laws and regulations.

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Annuity insurance and old-age insurance are both types of insurance set up to solve the old people's living security in their later years. The differences between them are mainly as follows: annuity insurance product information

1, voluntary

Endowment insurance adopts the mode of compulsory participation by the state, and the funds of management institutions are included in the national budget, which is arranged by the government as a whole and managed by institutions. In most countries, annuity insurance is generally established voluntarily by enterprises, which can be managed independently or entrusted.

2, non-private products and private products

Endowment insurance does not belong to the category of private economy, but strictly speaking, it is not a public product, because endowment insurance has certain exclusiveness, but it belongs to non-private products. Annuity insurance is a private product, and you can choose whether to buy it voluntarily.

3, pay-as-you-go system and fund accumulation system

The overall model of endowment insurance generally adopts pay-as-you-go system, which is guaranteed by intergenerational support. Annuity insurance mostly adopts fund accumulation system and implements personal protection.

4. Investment means are few and diversified.

The endowment insurance fund is managed and operated by the government, and the means of maintaining and increasing the value are generally saving and purchasing national debt. The capital investment means of annuity insurance are generally concentrated in the capital market, and the means are more diversified.

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5. The principle of fairness and efficiency

Endowment insurance pays attention to the principle of fairness and income redistribution. Annuity insurance pays more attention to the principle of efficiency and is a welfare means with incentive function.

6, sponsored by the government and the government has no direct responsibility.

The responsibility subject of endowment insurance is the government, while the responsibility subject of annuity insurance is the enterprise itself.