What does commercial insurance mean?
Commercial insurance refers to the form of insurance in which insurance companies sign contracts for the purpose of profit. In the event of an insured accident stipulated in the contract, the insurance company shall undertake the obligation to pay the insurance money according to the agreement, or assume the responsibility to pay the insurance money when the assured dies, becomes disabled, or reaches the agreed age and time limit.
Characteristics of commercial insurance
- The main body of commercial insurance is the insurance company, mainly for the purpose of profit.
- Commercial insurance is embodied in the insurance contract, and its contract has legal effect.
- The subject of commercial insurance is the life, property, and interests related to the property, etc.
What does commercial insurance include?
In short, it can be divided into three categories: guarantor, property insurance, and financial management. The most common is life insurance, which mainly includes:
- Critical illness insurance: Mainly to prevent serious illnesses, buy critical illness insurance, if you suffer from serious illnesses such as cancer, acute myocardial infarction, etc. and meet the conditions for claim settlement, critical illness insurance can directly pay a sum of money to make up for our loss of income and after illness Rehabilitation costs.
- Medical insurance: Which can reimburse our hospitalization expenses, is similar to medical insurance, but generally more and more fully reimbursed than medical insurance, which can greatly reduce the pressure on our medical expenses.
- Accident Insurance: Prevent injuries caused by accidents, such as car accidents, drowning, burns, scalds, falls and fractures, scratches by cats and dogs, etc.
- Life insurance: It protects people’s lives. If the insured dies, the insurance company will directly pay the insured amount.
Life insurance is generally divided into whole life insurance and term life insurance
Whole life insurance guarantees you a lifetime, and you will die, so you will definitely pay. Term life insurance is life insurance for some time. The policyholder can decide how long to insure, such as 20 years, 30 years, etc. If you die within the protection period, the insurance company will pay; if you are still alive after the protection period, it will not pay.
The difference between commercial insurance and social insurance
1. Different implementations:
Social insurance is a kind of government action, which is enforced by national legislation. All workers who meet the regulations must participate in social insurance by national laws to resist unknown risks and implement basic national security facilities to protect the construction of a harmonious society; commercial insurance is the operation behavior of the insurance company.
2. Different implementation purposes:
Social insurance is a government-led, not-for-profit behavior that protects the basic rights of workers. The purpose is to ensure the basic life of workers and maintain long-term social order. Commercial insurance is to make profits and is the A financial behavior in which the assured needs to pay the relevant premiums according to the insurance contract.
3. Different features:
Social insurance is compulsory, mutual aid, and welfare. Therefore, social insurance has wide coverage and low security. Its implementation cannot provide maximum security but needs to be implemented nationwide, so it has a wide coverage; commercial insurance is voluntary, Compensation and profitability, which requires the insured to pay the relevant insurance costs themselves, so its protection is more in-depth and the coverage is wider.
4. Different sources of funds:
Social insurance premiums are subsidized by the state, and then enterprises and individuals pay relevant expenses on time according to the prescribed proportion every month; commercial insurance premiums are borne by the insured, and the insurance premiums also exist for different products, insured amounts, the age of the insured and the protection period. difference.
5. Different levels of protection
The coverage of social insurance benefits includes medical care, pension, unemployment, work-related injury, maternity, etc. The coverage is at a basic level, so the amount of compensation is limited; while commercial insurance benefits are signed insurance contracts with the Insured, and insurance premiums are paid by the agreement. Therefore, as long as the conditions are met, the insured can obtain a high level and precise protection behavior.
6. The implementation subject and object are different:
Social insurance is the responsibility of governments at all levels, so government agencies are responsible for fund payment and management, and members who mainly pay social insurance are covered; while commercial insurance is carried out by insurance companies, as long as they meet the insurance conditions, they can become insured and obtain insurance according to law Assure.