Basic insurance, namely basic endowment insurance, is a social insurance system established and implemented by the state according to the provisions of laws and regulations. Under this system, employers and workers must pay endowment insurance premiums according to law. After workers reach the retirement age stipulated by the state or quit their jobs for other reasons, social insurance agencies shall pay them pensions and other benefits according to law to ensure their basic livelihood.

Social insurance is a social and economic system that provides income or compensation for those who lose their ability to work, are temporarily unemployed or suffer losses due to health reasons. The social insurance plan is organized by the government, forcing a certain group to use part of its income as social insurance tax (fee) to form a social insurance fund. Under certain conditions, the insured can get fixed income or loss compensation from the fund. It is a redistribution system, and its goal is to ensure the reproduction of material and labor and social stability. The main items of social insurance include old-age social insurance, medical social insurance, unemployment insurance, industrial injury insurance and maternity insurance.

In other words, social security includes basic insurance.