How do Property Insurance and Life Insurance Difference

Life insurance and property insurance are the two most basic types of insurance in insurance practice. Each contains many different types of insurance. The two have both similarities and differences. From the consumer’s point of view, the two have many differences in the connotation and characteristics of the concept.

Here are the articles to explain, The difference between property insurance and life insurance under consumer

Based on this, the article first summarizes property insurance and life insurance. Then discusses the specific differences between property insurance and life insurance.

Main Keywords: life insurance; property insurance; consumer; concept difference

Since the reform and opening up, with the continuous improvement of social and economic conditions. The living standards of the people have also been improving. At the same time, the insurance industry has achieved considerable development. In 2016, the single premium income reached 3.1 trillion yuan, a year-on-year increase of 27.5 %. In the foreseeable future, the insurance industry will continue to develop by leaps and bounds. There are many types of insurance, which can be divided into two basic types according to the insured objects. Namely, life insurance is centered on people, and property insurance is centered on things.

Both of them occupy a very important position in my country’s insurance market. For consumers, these two types of insurance are the most basic insurance, but many consumers lack a deep understanding of the differences and characteristics of the two and only know that life insurance is for the insurer, and property insurance is for money. It is detrimental to the protection of the legitimate interests of consumers. Based on this, the article discusses the conceptual differences between property insurance and life insurance from the perspective of consumers.

Overview of property insurance and life insurance

Property insurance takes property as the insurance subject matter of insurance, including property and its related interests, material property and related interests, responsibility, and credit. It is a socialized economic compensation system whose basic purpose is to compensate the economic losses of the policyholder or the insured. . Of course, the connotation of property insurance can be divided into broad sense and narrow sense. The broad sense of property insurance refers to the above definition, and the narrow sense of property insurance refers to the material property as the insurance target. , property insurance generally includes property loss insurance, liability insurance, credit insurance, surety insurance, and other insurance businesses.

Life insurance, as the name suggests, is an insurance form that takes the life of the insured as the subject of insurance. Not only that, but life insurance is also personal insurance that takes the life or death of the insured as the payment condition. Compared with property insurance, life insurance has similarities in terms of conditions or procedures. Both accept the terms of the insurer and pay for the insurance, and transfer the risk of the subject matter of insurance to the insurer. The difference lies in the different forms of risk. Life insurance takes people’s survival or death as a risk.

Conceptual differences between life insurance and property insurance from the perspective of consumers

To better investigate the difference between life insurance and property insurance from the perspective of consumers. It is necessary to carry out corresponding research on the actual buyers of insurance. In the research, the author conducted a follow-up survey on the customers of insurance companies in nine prefecture-level cities in Jilin. A total of 998 questionnaires were distributed, 984 questionnaires were returned, and 921 valid questionnaires were used, with an effective rate of 93.6%. According to the survey, the most popular insurance types of insured residents in Jilin Province are health and medical insurance and endowment insurance, with 527 and 456 people respectively, accounting for 57.2% and 49.5% respectively.

As for property insurance, there are 321 people covered by various types of insurance, accounting for 34.9%. Generally speaking, the participation rate of life insurance is higher than that of property insurance. As for the cognition of insurance types, most of the survey respondents are aware of the differences between life insurance and property insurance in terms of insurance objects. But there is still insufficient cognition about the connotation and characteristics of the two. For example, most respondents are not clear about the economic functions of property insurance and life insurance. This is extremely unfavorable for the insured to make better use of the insurance business to protect their legitimate rights and interests.

In this regard, the article analyzes the specific differences in the constituent elements of the two concepts from multiple perspectives:

First

The difference in the basis for determining the amount of insurance. In addition to the huge difference in the insurance labels, the basis for determining the amount of insurance is also very different between life insurance and property insurance. The determination of the life insurance amount is based on the life and body of the insured. Which is difficult to measure with an intuitive amount. While the determination of the property insurance amount is based on the actual value of the insured object. Usually, the higher the value of the insured object, the higher the insurance value. The amount is naturally higher.

Second

There are certain differences in the duration of insurance. Life insurance is usually long-term insurance. Except for special types of insurance, such as accident insurance, the insurance period is relatively long, and many life insurances have the nature of savings, which is a kind of investment insurance. Property insurance is just the opposite. Property insurance is generally guaranteed once a year and does not have the nature of savings.

Finally

There are certain differences in insurance operating techniques. The calculation of the death rate in life insurance is relatively accurate, and the control of the probability of accidents in the insurance process is also relatively accurate. Property insurance is not the case, the occurrence of risk accidents is more irregular and lacks stability. Moreover, as mentioned above, the nature of the amount of compensation between the two is also different. One is insurance money, and the other is property compensation.

Summary

As the two most important types of basic insurance, life insurance, and property insurance have both similarities and differences. Accurately grasping the conceptual differences between the two is the prerequisite for better use of insurance to protect their legitimate rights and interests and objective needs.