What is the difference between life insurance and property insurance?

The difference between life insurance and property insurance: life insurance takes people as the subject of insurance, and property insurance takes things as the subject of insurance.

Life insurance: It is insurance that takes a person's life and body as the subject of insurance. When people suffer an unfortunate accident or become incapacitated due to illness or old age, become disabled, die or retire at old age, the insurer pays insurance benefits to the insured or beneficiary according to the provisions of the insurance contract to solve the economic difficulties caused by illness, disability, old age or death.

Under the socialist system, life insurance is one of the forms of material guarantee that workers receive in the event of an unfortunate accident, loss of working ability or death of a family dependent.

Definition of property insurance: Property insurance is divided into broad and narrow senses. Property insurance in a broad sense refers to insurance that takes property and its related economic interests and liability for damages as the subject of insurance; Property insurance in the narrow sense refers to insurance with material property as the subject of insurance.

In insurance practice, the latter is generally referred to as property damage insurance.

The difference between property insurance and life insurance is: the subject matter of insurance is different! It's just that the object of insurance is different!

That is, property insurance is to insure the property for some unexpected situations (such as fire, some natural disasters, etc.), and life insurance is.

The object of insurance is the object of human life and body! The main scope of life insurance includes: accidental injury, death, accidental medical treatment, illness (major and minor illness) and so on!

As the literal meaning is, one is to claim your personal safety or birth, old age, sickness and death, and the other is to protect your property.

Life insurance and property insurance are the two main categories divided by insurance business. Their basic function is to pay a certain amount of financial compensation for the losses caused by unfortunate events. The main differences are:

1. The objects of insurance are different.

Life insurance is based on people's life and body as the insurance object, simply put, "people" as the insurance object; Property insurance is based on property and its related interests as the object of insurance (including property loss insurance, liability insurance, credit insurance, guarantee insurance and agricultural insurance, etc.)."objects" are the objects of insurance.

2. The amount of insurance is determined in different ways.

Since there is no distinction between high and low people's body and life, and it cannot be measured by money, when the insurance company underwrites life insurance, the amount of insurance purchased by the policyholder is agreed by both parties, and the insured amount of property insurance should be equal to the actual value of the insured property in one or more insurance companies (except medical insurance).

3. The concept of compensation is different.

In life insurance, when an insured accident occurs, the insurance company pays the policyholder the form of insurance money based on the insurance amount agreed by both parties is called "payment". If the loss is caused by a third party, the policyholder can not only obtain the insurance money from the life insurance company, but also obtain compensation from the perpetrator, and the insurance company cannot intervene and has no right to claim compensation from the third party. In property insurance, when an insured event occurs, the insurance company's compensation method is called "compensation". If the loss is caused by a third party, the insurance company has the right to recover from the third party in the name of the policyholder after fulfilling the compensation obligation, and the policyholder shall not benefit from it.

Therefore, in property insurance, the insurance company has the "right of subrogation".

In addition, life insurance contracts generally have a longer term, while property insurance contracts are shorter; Life insurance is generally savings, while property insurance is not; Ginseng insurance is mainly based on the solicitation business of ** people, while property insurance is mainly based on counter business.

1. The basic functions are different: property insurance is economic compensation, and life insurance is insurance payment.

2. The subject matter of insurance is different: the subject matter of property insurance is the property of the policyholder, and the subject of life insurance is the body or life of the policyholder.

3. The basis for determining the premium is different: the premium of property insurance is determined according to the insurance value, and the premium of life insurance is determined according to the policyholder's ability to pay.

Extended Materials. Insurance is a Chinese word, pinyin is bǎo xiǎn, English is insurance or insuraunce, the original meaning is safe and reliable protection; It is a tool used to plan life finances, a basic means of risk management under the conditions of market economy, and an important pillar of the financial system and social security system.

Insurance refers to the commercial insurance behavior in which the insured pays the insurance premium to the insurer according to the contract, and the insurer bears the responsibility for compensating for the property damage caused by the occurrence of the accident that may occur as agreed in the contract, or the insured bears the responsibility of paying the insurance money when the insured dies, is disabled, sick, or reaches the age and time limit agreed in the contract.

From an economic point of view, insurance is a financial arrangement for apportioning the loss of an accident; From a legal point of view, insurance is a contractual act, a contractual arrangement in which one party agrees to compensate the other party for its losses; From a social point of view, insurance is an important part of the social and economic security system, and it is an "exquisite stabilizer" of social production and social life. From a risk management perspective, insurance is a method of risk management.

The function of economic compensation is the foundation of insurance, which can best reflect the characteristics and core competitiveness of the insurance industry. It is embodied in two aspects:

1. Compensation for property insurance: Insurance is to compensate for the actual loss within the validity period of the insurance, the scope of liability agreed in the insurance contract and the insured amount when a specific disaster occurs. Through compensation, the actual loss of existing social wealth caused by disasters and accidents can be compensated in value and restored in use value, so that the process of social reproduction can be carried out continuously.

Such compensation includes not only compensation for the economic losses caused by natural disasters or accidents of the insured, but also economic compensation for the economic compensation liability of the insured to a third party in accordance with the law, and compensation for economic losses caused by breach of contract in commercial credit.

2. Payment of life insurance: The insured amount of life insurance shall be determined by the policyholder after consultation with the insured according to the degree of need for life insurance and the policyholder's ability to pay, as permitted by law.

Property insurance refers to insurance that takes property and its related interests as the subject of insurance, including property loss insurance, liability insurance, credit insurance, guarantee insurance, agricultural insurance, etc. It is a type of compensatory insurance that takes tangible or intangible property and its related interests as the subject matter of insurance.

Life insurance: It is insurance that takes a person's life and body as the subject of insurance. When people suffer an unfortunate accident or become incapacitated due to illness or old age, become disabled, die or retire in old age, the insurer pays insurance money or annuity to the insured or beneficiary according to the provisions of the insurance contract to solve the economic difficulties caused by illness, disability, old age or death.

One is to protect people, and the other is to protect property and responsibility

The difference between property insurance and life insurance is that property insurance is based on the extremely related interests of property as the subject of insurance, while life insurance is based on the life and body of the person as the object of insurance. That's all I can remember, hehe.

I hope I can help you.