National Insurance is a contribution scheme in the UK where employed people make payments towards certain state benefits. You will need an Ni Card to make contributions. The benefits are only payable if you meet the terms and conditions set by the National Insurance. It is generally a contributory system of insurance against sickness, death, unemployment pension and other benefits. Below is a list of securities that you can obtain from the National Insurance-;
-This is a fixed amount of money given to an employee after work service for a certain period of time. This is also referred to retirement saving plan. You are eligible for pension benefits if you have made a considerable amount of contribution towards the national insurance. These benefits are made available after you reach a certain age as stated by your country. There are 3 types of pensions;
Employment-based pension-This is a retirement savings plan aimed at providing people with income after retirement or when they are no longer working. Both the employer and the employee make the contributions as stated by the law.
Disability pension-This type of pension plan provides insurance for the members incase of disabilities which may render a person unfit get work, employment or for disability that comes with old age.
Social-state pension-This is an individual based where a person is only eligible to obtain payments for his contributions over the years of working. The state provides income for the eligible citizens.
-Eligible for those working mothers who have consistently made contributions and are insured. These payments are made when the woman is away from the job and is eligible for weekly or monthly allowances which is normally paid for a period of 14 weeks. The advantage of maternity benefits is that neither you or your employer make any contributions, you receive the allowances as if you were still working and making contributions.
-A person may receive incapacity benefits incase of a chronic disease like Cancer or Aids which may make him/her unable to work but to receive the payments, he or she must have made contributions for at least six months. The benefits are payable in short-term lower rate, short-term higher rate and long-term rate. Those with short term illnesses which makes them unable to work for a certain period of time are also eligible as long as they are members.
-You are eligible to receive the unemployment benefits after a job loss and you must insured for at least 52 weeks with continuous contributions. These payments are solely based on the amount of contributions that you have made over a specific period of time.
-These are benefits that a family member of the deceased is entitled to. The payments are made to the deceased’s widow or widower, children or the relatives. This is based on the National Insurance record of the dead person.
-These benefits are entitled to adoptive parents and are paid for the first 100 days for a child under 15 years. The benefits are calculated based on the daily salaries of the adoptive parents.
National Insurance helps people lead a normal lifestyle under different circumstances. It’s a of state’s way of giving its citizen proper support.