The difference between comprehensive insurance and social insurance

Social security is compulsory insurance, and comprehensive insurance includes social insurance and commercial insurance. The connection and difference between social insurance and commercial insurance.

Social insurance and commercial insurance are both related and essentially different. From the functional point of view: both are social risk resolution institutions, social insurance is the main body of multi-level social security system, and commercial insurance can be used as a supplement to social insurance and an integral part of multi-level social security system. Social insurance came into being later than commercial insurance, and many terms and calculation and prediction methods it uses are related to commercial insurance. There are essential differences between social insurance and commercial insurance. First of all, the nature is different. Social insurance is enforced by national legislation and belongs to government behavior, while commercial insurance is a commercial behavior, and the relationship between insurer and insured is completely voluntary. Secondly: the purpose is different. Social insurance is not for profit, its starting point is to protect the basic livelihood of workers, maintain social stability and promote economic development, while the fundamental purpose of commercial insurance is to obtain profits, only to give economic compensation to insurers on the second premise. Third, the sources of funds are different. Social insurance is shared by the state, employers and individuals, while commercial insurance is entirely borne by the insured. Fourth, the government has different responsibilities. Social insurance is a basic right enjoyed by citizens. The government bears the ultimate responsibility of social insurance, while commercial insurance is restricted by market competition mechanism. The government mainly supervises commercial insurance according to law to protect the interests of the insured.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.