(in Britain) a system of payments that have to be made by employers and employees to provide help for people who are sick, old or unemployedto pay National Insurance (contributions)CultureThe money from National Insurance contributions is used by the government for payments to unemployed people and others in need, and also to help pay for the National Health Service. National Insurance is therefore an important part of the welfare state. Every adult has a National Insurance number and this number is used by the Department for Work and Pensions to identify people.