The Relationship between Social Security and Life Insurance

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Commercial life insurance is an insurance operated by commercial insurance companies. It takes human life or body as the insurance object. When the insured retires in old age or the insurance period expires, the insurance company will pay the pension according to the contract. However, it must be recognized that commercial life insurance and national statutory endowment insurance are different insurance systems, and there are significant differences in the following aspects:

The nature of insurance is different-endowment insurance is a social insurance enforced by the state according to law and belongs to government behavior; Commercial life insurance is a commercial activity, and the relationship between the insurer and the insured is completely contractual.

Different insurance objects-the insurance object of endowment insurance is usually social workers within the legal scope; The object of commercial life insurance is all natural persons who voluntarily take out insurance.

The basis and way of realization are different-endowment insurance is compulsory according to national laws and regulations and belongs to compulsory insurance; Who should participate in the old-age insurance, whether they like it or not, must participate. Commercial life insurance generally adopts the principle of voluntariness, and the insurance contract can only be established and become legally effective if both parties agree; The insurer may terminate the insurance contract because the insured fails to perform the payment obligation.

Different levels of security-the level of security of endowment insurance is relatively stable, generally higher than the level of relief and unemployment insurance, which can meet the basic life of workers after quitting the labor field; The level of commercial life insurance is unstable, and the insurance income depends on the insured amount, that is, more investment and more insurance, less investment and less insurance, and no investment and no insurance.

The subjects of risk-taking and management are different-the obligation to pay or contribute endowment insurance is usually borne by employers, individual workers and the state. The government entrusts a special public welfare social insurance institution to manage and operate the endowment insurance business. The responsibility of the pension fund to pay risks is shared by the state and the government. The insurance cost of commercial life insurance is borne by the insured, and the business entity is a self-financing commercial insurance company. The risk of compensation is often shared by commercial insurance companies and insurance beneficiaries.

In a word, there are strict differences between national statutory endowment insurance and commercial life insurance, but they are not antagonistic and competitive. Commercial life insurance is a useful supplement to the national statutory endowment insurance. A legal person or individual who should participate in the statutory old-age insurance shall not refuse to participate in the statutory old-age insurance on the grounds of participating in commercial life insurance; Commercial insurance companies and their employees should also participate in statutory endowment insurance according to regulations.