What is social security and what is business insurance? Difference between social security and commercial insurance

Social insurance and commercial insurance.

Social insurance is a legal insurance, which is implemented and managed by the state administration on the basis of law and by administrative means. All adults who are working or self-employed must participate in the insurance. It can provide participants with economic security within the scope of basic medical insurance, basic pension insurance, work injury insurance, unemployment insurance and maternity insurance. Because social insurance is a governmental act, it is characterized by compulsion. Employers (or organizations) should sign labor contracts when hiring employees, and employers (or organizations) should carry out social insurance for employees, which is the social responsibility and obligation of employers.

Individuals can participate in social security as freelancers, after which they have to fulfill the obligation to make contributions on time, in full and continuously. Participants can receive financial protection from the relevant parties when they encounter the above problems.

Social security emphasizes social fairness (each participant has only one share), and its basic principle is: low level, wide coverage. For the participants basically no health requirements, the protection is guaranteed but not inclusive. Therefore, its degree of protection can not fully meet the needs of individuals, so the need for commercial insurance to supplement.

Commercial insurance: It is the insurance that collects the power of the society (the insured) to provide due economic protection for a small number of insured people when they encounter certain (e.g., major diseases, accidental injuries, medical and health ...... etc.) personal risks. Purchase of commercial insurance is a kind of business behavior, it should be based on the individual's needs and the individual's financial ability to pay for the insurance, since it is a commercial insurance, it has a strong commercial color, it is a supplement to social insurance. Commercial insurance emphasizes individual fairness (purchase according to one's own needs and financial ability, buy more, more protection, buy less, less protection, no protection if you don't buy), its position should be: the supplement of social insurance. The principle of purchase is: voluntary principle.

Since social security belongs to the policy security, commercial insurance belongs to the commercial security, their attributes are not the same, so there is nothing comparable between them. Must be compared, social security is the foundation, commercial insurance is complementary.

The two kinds of insurance **** the same characteristics: to provide a certain degree of financial security for the insured. Social security is a must because it comes with certain benefits. As for commercial insurance to buy or not to buy? What kind of insurance do you need to buy the most? How much to buy? That will be determined by your own needs and financial ability to pay.

Buying insurance is about protection, and protection is what everyone needs. So, before you buy insurance, you must be clear: what is insurance? Why do I need to buy insurance? What kind of protection do I need most? How much protection do I need? How much of the insurance product I need can I buy with my current ability? If you really want to buy some insurance for yourself and your family, we suggest that you:

1, first learn and understand some knowledge of insurance;

2, understand the role and significance of insurance;

3, clear their own needs for insurance;

4, according to their own actual needs and financial ability to take out insurance. The real thing is: to consume clearly, to enjoy honestly. Otherwise, due to their own momentary ignorance, in exchange for the future may be unlimited trouble.

For adults, buying insurance should first buy social security, after that, you can choose to buy some commercial insurance to supplement. Because, social security is the foundation, commercial insurance is supplementary. There are some basic principles for buying commercial insurance, such as: first adults, then children; first basic, then perfect; first near and then far ...... and so on. It should be very necessary to understand and follow these principles. If you still want to know more about the specialized knowledge of insurance, you can visit the insurance website. Or find a responsible, business savvy and highly qualified insurance salesman for relevant business advice.

Health problems, accidental injuries and old age problems are the biggest risks in life that every person may encounter at any time, and once such a risk is encountered, it has the potential to directly affect the fate of a person or a family. Therefore, these three risks should be mandatory for everyone to insure.

To buy insurance for minors, the main choice is to buy commercial insurance in the school level insurance, accidental injury comprehensive insurance, whole life or term health insurance. If the child is too young, some insurance products you want to buy for your child may be restricted by some policy regulations, so you can buy less health insurance for your child first, and if possible, attach a hospitalization allowance insurance or hospitalization medical insurance.

Additionally, you can also consider buying your child a pediatric hospitalization mutual benefit (about 40-50 yuan or so/each/year) from the social security bureau or street office, so that your child's protection in terms of health insurance will be improved a bit. When the child is a little older, then buy him some insurance that suits his needs.

Many people buy commercial insurance before, only the desire to buy and impulse, but not seriously to understand the relevant insurance knowledge, listen to the salesman three said two bought. After getting the policy also no longer take a serious look at the content of the terms and conditions therein, and afterwards talk to others, only slowly feel that they have bought the insurance in the end what is insured are not clear, or to find that they buy the insurance is not the product they want. The remorse at that point will be too late to catch up. With this in mind, it is advisable to learn and understand before you decide to buy. As the saying goes: sharpen your knife.

Generally speaking: the ideal basic effective protection for each person: lifelong health insurance should be no less than 300,000 yuan; accident insurance should be no less than 200,000 yuan per year; pension insurance should be no less than 100,000 yuan. Business insurance is not the answer to having one, but it is important to live within your means.

For salary earners, the cost of buying commercial insurance should be about 15 percent of their annual income. If it's less, the coverage may seem inadequate; if it's more, it may have some adverse effects on your daily life.

The insurance company has some requirements for the insured and the policyholder when underwriting the policy, namely: i. The insured must be in good health. Secondly, the insured should have a stable income and the ability to pay the premiums. Third, the payout for minors should not exceed 50,000 yuan.

Buying commercial insurance (no matter what kind of insurance) is definitely: the earlier you buy, the better. Because it has a law: in the case of the same degree of protection, the premiums paid are increased with the age of participation.

Insurance is a discipline, buy commercial insurance needs to be: to have a well-planned and integrated program arrangements and progressive psychological preparation, do not envision that a single investment can solve the protection needs of a lifetime. Or, to buy an insurance policy would like to provide themselves with multi-faceted protection issues.

Extended reading: insurance how to buy, which is good, hand to teach you to avoid the insurance of these "pits"