Is National Insurance good value for money?

[El Cid]

Most of us pay into National Insurance, do we get more out than we pay in?

 

I pay in around £80 per month, how much would a private policy pay out if I paid in the same amount?

I guess the number are going to be difficult, but I dont recall this topic being discussed before.

[martin6]

Its not really an insurance policy, it just goes into a pot with all taxes

[*_ash_*]

Its not really an insurance policy, it just goes into a pot with all taxes

 

You're right, but they can still con you with this one.

 

In the 90s I was out of work for about 3 weeks but didn't bother signing on, and I got a letter through at the end of the year saying that I wouldn't be entitled to a full state pension unless I paid up. I rang and told them that it was pointless to fill in signing on forms, but I was told I should have. Now that does sound like insurance policies!

[LeMaquis]

Most of us pay into National Insurance, do we get more out than we pay in?

 

How can we all get out more than we pay in?

[L00b]

Most of us pay into National Insurance, do we get more out than we pay in?

 

I pay in around £80 per month, how much would a private policy pay out if I paid in the same amount?

I guess the number are going to be difficult, but I dont recall this topic being discussed before.

As pointed out by martin6, it isn't an insurance product, it's just another form of income taxation that funds NHS/social services and state pensions (IIRC).

 

You can't assess its value/worth by comparison to private health insurance/pension products.

 

People on low salaries in receipt of benefits, social measures, NHS healthcare, tax credits and whatnot routinely 'get out more' than they pay in, and reciprocally (I pay in £800 a month for the first 4 months of the financial year (as a Director, HMRC takes the lion's share of my annual NI dues early/upfront) and get sod all out).

Edited August 26, 2015 by L00b

[unbeliever]

Most of us pay into National Insurance, do we get more out than we pay in?

 

I pay in around £80 per month, how much would a private policy pay out if I paid in the same amount?

I guess the number are going to be difficult, but I dont recall this topic being discussed before.

 

As pointed out. It's just another kind of income tax. They should really just combine it into income tax and save a lot of admin effort.

 

Private policies get invested. So it's quite possible and indeed normal to get out more than you pay in. The state pension doesn't. Your state pension, if they still exist at that time, will be paid out of the taxes of people working at that time; the money you paid in will be long gone.

[Annie Bynnol]

National Insurance taxes the poor unfairly and is not transparent in its structure.

 

But as a "provider" of funds for the NHS it is regarded by some as providing the best in the Western world because it scores highly in the cost, efficiency and access to healthcare.

 

In countries where health care is fully or partially privately insured, the choice and quality and length for which treatment lasts is restricted by what you have bought. Cover for the same or similar illnesses can be terminated according to the terms and conditions of the insurance.

 

In some partially funded/private insurance examples there are often complaints of inequality and unnecessary treatments with the value of the private insurance governing.

 

With an ageing population and the need for more routine treatments like hip, cataract, diabetes, cancer treatments etc the value of healthcare plans like the NHS becomes even more attractive. Private health plans routinely exclude cover for long term illnesses and care.

 

The same survey suggest that an average American would need to buy cover for themselves of over £400 a month for the equivalent treatment provided by the NHS.

Edited August 26, 2015 by Annie Bynnol

[unbeliever]

National Insurance taxes the poor unfairly and is not transparent in its structure.

 

But as a "provider" of funds for the NHS it is regarded by some as providing the best in the Western world because it scores highly in the cost, efficiency and access to healthcare.

 

In countries where health care is fully or partially privately insured, the choice and quality and length for which treatment lasts is restricted by what you have bought. Cover for the same or similar illnesses can be terminated according to the terms and conditions of the insurance.

 

In some partially funded/private insurance examples there are often complaints of inequality and unnecessary treatments with the value of the private insurance governing.

 

With an ageing population and the need for more routine treatments like hip, cataract, diabetes, cancer treatments etc the value of healthcare plans like the NHS becomes even more attractive. Private health plans routinely exclude cover for long term illnesses and care.

 

The same survey suggest that an average American would need to buy cover for themselves of over £400 a month for the equivalent treatment provided.

 

It's a mistake to compare the UK state run healthcare system only with the (mainly) private US system. There are far better examples of private or public/private hybrid systems throughout Europe. France for a start.

[L00b]

National Insurance taxes the poor unfairly and is not transparent in its structure.

 

Do you care to expand on these claims?

 

Here, all you ever wanted to know about NI in clear and plain English at that link, please read before you reply

Edited August 26, 2015 by L00b

[Obelix]

National Insurance taxes the poor unfairly and is not transparent in its structure.

 

Cobblers. The "poor" pay very little in NI and if they are not earning and sign on it's paid for them! How is that unfair? You want me to pay even more so they don't have to pay those few pence that they do?