National insurance is an insurance scheme where people who are employed make payments for their own benefits. These payments are known as National Insurance contributions and they can be payable in case you can meet the contribution conditions.
In order to claim a tax credit or a benefit, a national Insurance number is mandatory. This depends on your national Insurance contributions as well. You also need to provide your National Insurance number if you apply for a student loan or a new job. The National insurance number is unique and you get a lot of benefits from the same.
Benefits of national insurance
It is always important to ensure that you get all the benefits that you actually deserve. So what are the benefits that you can avail from a National insurance Plan in case you are sick or unemployed or an old person? If you are a young person who is under the age of 16, and you parent is entitled to child benefit for you, you can be automatically registered for the National Insurance scheme and the number would be sent across to you.
National insurance contributions build up your entitlement to contributory benefits these contributory benefits include
Employment and Support allowance – This benefit will pay you even if you are sick and have left job
Maternity allowance- you can apply for this allowance when you are pregnant.
Bereavement benefits and widowed parent allowance- you may qualify for this allowance if you are 45 years and below and below the state pension age.
Jobseekers allowance – You are eligible for contribution-based allowance if you have paid national Insurance contributions. This is taxable Income
Maternity allowance is a weekly payment for women who are pregnant or have recently given birth. This applies to Scotland, England, Wales and North Ireland. There are no specific rules and the income is not taxable. Maternity allowance is paid to pregnant women who do not qualify for statutory maternity pay from their employer.
You are eligible for contribution-based allowance if you have paid national Insurance contributions. This is taxable Income you can claim for this type of allowance if your income and your savings are low. This can be received up to 6 months if you have been working and have paid enough national insurance contributions within the last few years.
Employment and Support allowance
This benefit will pay you even if you are sick and have left job. Employee support allowance can be obtained if your income is low enough. Your savings are below 16000 pounds. You have limited work capability
Bereavement benefits and widowed parent allowance
If your husband died before 6 April 2017, and you are aged 45 or over but below State Pension age with no dependent children, you are allowed this allowance. If your husband, wife or civil partner died before 6 April 2017, you are pregnant or have dependent children under the age of 19 you can avail this allowance. So act fast and get your NI apply number for various benefits.