by Nowadays, people’s awareness of preventing risks is very high, and many people provide protection for themselves and their families by purchasing commercial insurance. However, there are still some insurance novices who do not understand insurance very well, thinking that they have already bought social insurance, and the protection should be very comprehensive. In fact, this is not the case, there are many differences between the two. Recently, many people have come to inquire: What does commercial insurance mean? What is the difference between commercial insurance and social security? Let’s share this knowledge today.
1. What is the meaning of commercial insurance
Commercial insurance is an insurance company that provides different types of insurance products to meet people’s needs under the market development, aiming to provide people with comprehensive protection. The types of commercial insurance are more complex and can be roughly divided into property insurance and personal insurance. The more common property insurance is auto insurance, which will not be repeated here. The more common personal insurance can be divided into four categories, namely critical illness insurance, medical insurance, life insurance, and accident insurance, which have irreplaceable roles. Provide comprehensive health risk protection.
Second, what is the difference between commercial insurance and social security
1. Different in nature
Social security is welfare provided by the state to individual medical care and old-age security. It is compulsory and has a wide range of protection. Commercial insurance is a personal behavior and is voluntary. It is a guarantee that an individual chooses according to his own economic situation and needs. You can choose medical insurance, critical illness insurance, annuity insurance, etc. in a targeted manner. It is generally recommended that you choose based on social security. Buy commercial insurance.
2. The guarantee period is different
The medical and old-age security of social security is generally guaranteed for as long as you live, and the longer you live, the more you benefit. The protection period of commercial insurance is more flexible, mainly determined by the type of insurance insured. Short-term insurance can be guaranteed for one year, and long-term insurance can be guaranteed for 30 years or life. The length of the insurance period is determined by the insured. Buy it early and protect it early.
3. Sickness and accident insurance
The scope of social security insurance is relatively wide, and hospitalization for diseases can be reimbursed through invoices. Of course, there are certain proportion restrictions on reimbursement. Generally, there are restrictions on targeted drugs, self-paid drugs, etc.; in addition to diseases, accidents in the unit and on the way to and from get off work are also guaranteed. Commercial insurance coverage is more extensive, and it can complement social security in terms of disease protection. After social security reimbursement, the rest is almost fully reimbursed. There is no limit to the use of insurance benefits for critical illnesses that can be diagnosed immediately. If you buy accident insurance, the reimbursement location is not limited, and accident insurance can buy a high amount of insurance with only a small premium, which is more cost-effective.
4. Death protection
In the unfortunate event of death, social security will refund part of the value of the personal account and reimburse the funeral expenses, which is basically no compensation for the family. However, if you purchase a commercial insurance protection product, you will have higher life insurance coverage. As long as the waiting period has passed, even if you only pay the premium once, the death of the insured will give the family the insurance money agreed in the contract, and the family is also a consolation.
Through the introduction of the above content, you must have understood what commercial insurance means. Different from the compulsory insurance of social insurance, commercial insurance is a voluntary behavior of individuals, and there are many types. Users can purchase insurance according to their needs. Social insurance provides basic protection for everyone, while commercial insurance provides more comprehensive protection based on social security. Commercial insurance and social security do not exist which is better or worse. They are the guardians of people in life. It is recommended that you apply for insurance together so that they can play a big role.
