Question

What are the main differences between social and private insurance? Discuss the pros and cons of each

Answer 1

Difference between private and social insurance are-

• Private insurance emphasis mainly on the equity between individual purchasers of coverage while social insurance emphasis mainly on participants having social adequacy of benefits.
• Private insurance is run by private companies while social insurance is run by government

Advantage of private insurance

• In case of private insurance , it may privide facilities at lower cost since sometimes public facilities can be overcrowded.

Disadvantage of private insurance

• Many times insurance in private companies can be very costly for normal person. Like you are in very poor health condition and you have to pay lots of dollars for the insurance

advantage of social insurance

• Social insurance provide you the insurance at affordable rates in comparison to private insurance

Disadvantage of social insurance

• In social insurance people pay premium which means low standard of living and basic necessities of life