what is national insurance
What is national insurance?
Answer:
National insurance is a social security system in the United Kingdom that primarily funds state benefits. It is a form of insurance where employees and employers pay contributions to build entitlement for certain state benefits such as the State Pension, sick pay, and unemployment benefits. National Insurance contributions also go towards funding the National Health Service (NHS). The system is designed to provide financial protection to individuals in times of need, such as illness, unemployment, or retirement. The contributions made by individuals are based on their earnings and are crucial for accessing various state benefits and services.