Social security and insurance are two different systems, and although they are both related to risk protection, there are some notable differences in some aspects. This article will compare social security and insurance from these perspectives one by one to help readers better understand the differences between them.
Social insurance, that is, social insurance, is mainly to ensure that workers can receive basic living security when they lose their ability to work or encounter other risks. The object of social security is workers, including employees of enterprises, government agencies and institutions. Commercial insurance, on the other hand, does not have a specific protection object, and anyone who meets the insurance company's insurance conditions can buy it, including individuals, families, businesses, etc.
Social security has the nature of social security and is a policy implemented by the state in order to maintain social stability and protect people's livelihood. It is backed by state finances and based on the principle of social solidarity, and aims to provide basic living security for the vast number of workers. Commercial insurance, on the other hand, is profit-oriented, and insurance companies provide risk protection for policyholders through the sale of insurance products, while pursuing profit maximization.
The main contributors to social security include the state, enterprises and individuals. The state bears a part of the social security costs through fiscal expenditures, enterprises pay a certain percentage of social security fees for employees, and individuals also need to pay a certain amount of social security fees. This multi-party contribution model is conducive to diversifying risks and protecting the basic rights and interests of workers. The main contributor of commercial insurance is the policyholder, that is, the individual or unit that purchases the insurance, and they need to bear the insurance cost by themselves.
The management department of social security is the most functional department, such as the human resources and social security department. These departments are responsible for the formulation, implementation and supervision of social security policies to ensure the proper functioning of the social security system. Commercial insurance is operated and managed by an enterprise insurance company, which designs insurance products and provides insurance services to customers according to market demand.
The scope and level of social security are relatively limited, mainly to solve the basic living problems of workers. Social security benefits include endowment insurance, medical insurance, unemployment insurance, work-related injury insurance, and maternity insurance, but these benefits can usually only meet basic living needs. The scope and level of protection of commercial insurance are more flexible, and different levels of protection can be provided according to the needs and ability of the policyholder, such as accident insurance, health insurance, life insurance, etc.
There are obvious differences between social security and insurance in terms of protection objects, basic attributes, payment subjects, management departments, coverage and level, etc. In real life, workers can also purchase commercial insurance while participating in social security to obtain more comprehensive risk protection.