Insurance concepts

What Is National Insurance?

Most of us already know the basic definition of national insurance, it’s a means of protecting us financially in the event of a loss. Whether that be loss of life, vehicle, or our homes. What about national insurance though? What is national insurance and what is the purpose of national insurance?

Put simply, the definition of national insurance (NI) is a fundamental component of our state’s socio-economic safety net. It creates a form of social security for our citizens, as NI contributions establish certain state entitlements to workers and their families. National Insurance helps us create a safety net for ourselves and the most vulnerable in our society. This aids in sustaining at minimum, a decent quality of life for all our citizens, especially when they are in need the most. 

  • Who pays national insurance?

National Insurance is paid by employers, as well as employees and self-employed workers. Once you reach the state pension age, you don’t need to pay it at all, which effectively reduces your tax bill.

  • How do I make national insurance contributions?

If you’re employed, National Insurance is automatically deducted from your monthly pay.  If you’re self-employed, you’ll need to organize these contributions yourself, usually through your self-assessment tax return

  • What are some benefits of N.I.?

  1. Universal Healthcare
  2. Retirement Pension Program
  3. Unemployment / Disability Benefits
  4. Can I make additional contributions to N.I.?

Employees may make additional voluntary payments to increase the pension amount they’re eventually entitled to receive.

 You can easily get more information on N.I. contributions and benefits, seek a financial advisor, or easily visit https://www.thefinroute.com/to connect to financial advisors automatically. 

 

Recommended Posts

No comment yet, add your voice below!


Add a Comment