There are several types of endowment insurance.

At present, the national pension insurance systems in the world can be divided into three types, namely, insurance-funded (also known as traditional) pension insurance, compulsory savings pension insurance (also known as provident fund model) and national overall pension insurance.

Guaranteed endowment insurance is one of the modes of endowment insurance. The government passed relevant legislation as the basis for enforcement. In addition to individuals paying endowment insurance premiums and enterprises paying social insurance premiums for employees, the government also allocates funds from the government as part of the insurance fund according to law. After the insured reaches a certain age and retires, he can get a regular pension after canceling his labor obligations, and the amount is usually related to the income level at work. The United States and Japan adopt this model. Emphasizing self-protection at the same time of state funding embodies the unity of rights and obligations and has strong social mutual assistance. The shortcomings are as follows: the standard of paying endowment insurance premium is very complicated and difficult to master; With the acceleration of population aging, the burden of the state, enterprises and social members will become heavier and heavier, which will restrict a country's economic development. Countries implementing this model began to turn to multi-level pension insurance, that is, to establish different levels of pension insurance systems according to different pension insurance objectives.

Compulsory savings endowment insurance is an endowment insurance system mainly implemented in developing countries in Southeast Asia. Its name is "Central Provident Fund System", which was first produced in 1950s. According to incomplete statistics, there are about a dozen countries, such as Fiji, Ghana, India, Indonesia, Malaysia, Kenya, Nepal, Nigeria, Singapore, Sri Lanka, Tanzania, Uganda, Zambia and Solo Islands. Among them, Singapore's achievements are the most remarkable. Its biggest feature is that it does not need state financial allocation, and it forces employees and employers to take out insurance at the same time. Fully realized the principle of self-protection.

The national overall endowment insurance system refers to a typical welfare endowment insurance system in which the state (or the state and the employing unit) bears the endowment insurance premium of employees in full, and the employees do not pay.

The role of endowment insurance:

1. Old-age security: The most basic function of old-age insurance is to provide old-age security for the insured and ensure that they have a certain source of livelihood after retirement. At present, China's social security system is constantly improving, and endowment insurance has become one of the main components of China's social security. After paying a certain pension insurance premium, the insured can get basic pension insurance benefits after retirement, thus alleviating the economic pressure after retirement.

2. Improve the quality of retirement life: In addition to the basic old-age insurance, there are additional old-age insurance such as enterprise annuity and occupational annuity. These extra old-age insurance can further improve the quality of retirement life. Enterprise annuity is a form for enterprises to strengthen the welfare protection for employees, which can supplement the deficiency of basic old-age insurance and provide better retirement benefits. Occupational annuity is an old-age insurance plan managed by professional organizations or trade associations, and it is also a way for enterprises to strengthen employee welfare protection.

3. Promote consumption upgrading: The popularization of endowment insurance can also promote consumption upgrading. Old-age insurance provides retirement protection for the elderly, so that the elderly are no longer dragged down by economic pressure, thus having more funds for daily life and consumption. This also means that with the popularization and improvement of endowment insurance, the consumption power of the elderly will be improved, which will help promote consumption upgrading.

4. Relieve the family's economic pressure: The popularization of endowment insurance can also alleviate the family's economic pressure. Under the traditional mode of providing for the aged, children need to bear the burden of providing for the aged after their parents retire. With the development of old-age insurance, the elderly can get certain retirement benefits through old-age insurance, reducing the financial burden of their children. This can not only improve the quality of life of the elderly, but also enable children to face the pressure and work of daily life more calmly.

To sum up, old-age insurance can not only provide old-age security, but also improve the quality of retirement life, promote consumption upgrading, and reduce family economic pressure. As an important social security system, the popularization and perfection of endowment insurance will help to meet the needs of the elderly and promote social progress.

Legal basis:

People's Republic of China (PRC) social insurance law

Article 12

The employing unit shall pay the basic old-age insurance premium according to the proportion of the total wages of its employees stipulated by the state, and record it in the basic old-age insurance pooling fund.

Employees shall pay the basic old-age insurance premium in accordance with the proportion of wages stipulated by the state and record it in their personal accounts.

Individual industrial and commercial households without employees, part-time employees who have not participated in the basic old-age insurance in the employing unit and other flexible employees who have participated in the basic old-age insurance shall pay the basic old-age insurance premiums in accordance with state regulations and record them in the basic old-age insurance pooling fund and individual accounts respectively.