What is endowment insurance?

Endowment insurance is an important social security system, which aims to provide economic support and living security for the elderly after retirement. This paper will introduce the basic concept, types and functions of endowment insurance, and help you better understand and know the relevant legal knowledge of endowment insurance.

First, the basic concept of endowment insurance

Endowment insurance is a kind of social security system, which collects a certain premium from the insured and collects funds to pay the living expenses of the elderly. When reaching the statutory retirement age or meeting other conditions, the insured can receive a pension as economic compensation.

Second, the types of endowment insurance

Endowment insurance is mainly divided into two types: employee endowment insurance and urban and rural residents endowment insurance.

Employee pension insurance

The endowment insurance for employees is jointly paid by enterprises and individuals, aiming at providing old-age security for employees. During the period of employment, enterprises and individuals pay endowment insurance premiums in accordance with the policy. After the accumulated contributions reach a certain number of years, they can receive pensions when they reach the statutory retirement age.

Endowment insurance for urban and rural residents

Endowment insurance for urban and rural residents is paid by individuals voluntarily, aiming at providing old-age security for urban and rural residents. Individuals can choose different grades to pay according to their own economic situation and needs. When you reach the legal retirement age, you can receive a pension as economic compensation.

Third, the role of endowment insurance.

Provide financial support

Endowment insurance provides financial support for the elderly and helps them pay their living expenses, especially medical expenses. This helps to reduce the financial burden of families and improve the quality of life of the elderly.

Promote social stability

Endowment insurance system is one of the important cornerstones of social stability. By providing living security for the elderly, it reduces the social burden and is conducive to maintaining social stability and harmony.

Encourage individuals to save and invest.

Paying endowment insurance premiums can be regarded as a long-term saving and investment behavior. This will help to cultivate personal financial awareness and encourage individuals to plan for future pension.

In a word, endowment insurance is an important social security system, which aims to provide economic support and living security for the elderly after retirement. By understanding the basic concept, types and functions of endowment insurance, we can better realize its importance and value in social life. At the same time, for individuals, understanding and mastering the relevant knowledge of pension insurance is also helpful to plan their future pension.