What's the difference between social security and commercial insurance?

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Some differences between social insurance and commercial life insurance Basic definition: 1. Commercial life insurance is an insurance operated by a commercial insurance company, with human life and body as the subject matter of insurance. Life insurance? What does life insurance cover? Life insurance? And then what? Accident insurance? And then what? Health insurance? . ? Life insurance? Refers to life insurance with human life as the subject matter of insurance, which is divided into death insurance (whole life insurance, term life insurance, etc. ), survival insurance (pension annuity, education annuity, etc. ) and life and death old-age security (regular old-age security, etc. )? Accident insurance? It refers to personal insurance with personal injury caused by sudden, unintentional, foreign and non-disease accidents as the insurance subject, including accidental injury insurance and accidental injury medical insurance. ? Health insurance? It refers to the personal insurance that takes people's health status as the insurance object, including general medical insurance and critical illness insurance. 2. Social insurance is a social insurance system established by national legislation, in which workers temporarily or permanently lose their ability to work or stop working in the case of old age, illness, pregnancy, disability, unemployment, death, etc., and cannot get paid. When they and their immediate family members lose their income, they get material help from the state and society, including insurance, work injury insurance, unemployment insurance and maternity insurance. The difference between endowment insurance (commonly known as five insurances), social insurance and commercial life insurance: 1. The basic nature is different. Social insurance is a compulsory social security implemented by the state. All workers and all enterprises within the scope of the law must participate, and it is not for profit. It is a public welfare undertaking and legal insurance. Its nature is similar to the national nine-year compulsory education. Life insurance is a commercial activity, which is realized by signing a contract on a voluntary basis. Whether to participate depends entirely on the wishes of the insured. It is agreed insurance, similar in nature to higher education. 2. The objects and purposes of insurance are different. Social insurance is mainly aimed at workers, and its purpose is to protect the basic needs of workers when they lose their ability to work or temporarily lose their ability to work or lose their labor opportunities. Commercial life insurance is aimed at natural persons, and its main purpose is to give certain economic compensation to the insured after a contract accident. Insurance companies share part or all of the economic losses for the insured. 3. Different management systems Social insurance is led by the central and local governments, and social insurance institutions are responsible for management. Social insurance is a monopolistic government behavior, while commercial insurance is a competitive enterprise behavior. Social insurance can only be run by the government. The government can designate a department or entrust an agency to handle it. Moreover, only one department or one institution can handle one or all types of social insurance, and several departments or institutions are not allowed to handle the same type of insurance at the same time. Commercial life insurance is operated by an independent life insurance company and belongs to the financial system of the national economy. Only responsible for compensation for economic losses, social services are not involved after compensation. Commercial insurance companies can set up any kind of insurance, and many insurance companies can handle the same kind of insurance, or they can design and handle any kind of insurance themselves, and compete on an equal footing in full accordance with market rules. 4. Different categories of legislation Social insurance is stipulated by the state and implemented in the form of legislation, which belongs to the category of social labor legislation. Social insurance belongs to national legislation and is mandatory, and all units and individuals must participate. It is insurance, compulsion, mutual assistance, welfare and universality. Commercial insurance is a kind of financial activity, which belongs to the category of economic legislation. 5. The relationship between rights and obligations is different. Social insurance emphasizes that workers must fulfill their labor obligations and make contributions to society. Then enjoy social insurance benefits and realize the basic equality of rights and obligations. Commercial life insurance is based on the amount of insurance premium paid by the insured to determine the amount of compensation after the risk occurs. The reciprocal relationship of rights and obligations is manifested in the relationship of multi-investment and multi-insurance, and no investment and no insurance. 6. Social insurance guarantees basic living. In order to stabilize society, we should focus on long-term basic living security. The determination of the security level should not only consider the original production level of workers, the average social consumption level and the affordability of the state finance, but also adjust with the increase of the average social wage and the change of the price index. Commercial life insurance is mainly based on one-time payment, and the determination of payment level only considers the insured's insurance amount, without considering other factors. Social insurance and commercial insurance, as the two most important pillars in the whole social security system, play a very important role. Both of them have their own emphases and different functions, so they can't replace each other, just like the relationship between compulsory education and higher education. A correct understanding of the relationship between social insurance and commercial insurance is conducive to the insured to establish a correct insurance concept when choosing commercial insurance.