Which statement defines a dependent?

Which statement defines a dependent?

• A. A person who pays premiums.
• B. A person who owns the insurance policy.
• C. A person who depends on another person for financial support.
• D. A person who is the primary beneficiary of the policy.

Answer: (C)

Dependency in insurance means a person who relies on another for financial support. The statement that best fits defines a dependent as someone who depends on another for financial support—like a spouse or child—who relies on the insured for money for daily living and care. This distinction matters because dependents are typically covered under the policy based on that financial reliance, not because they are paying premiums or because they own the policy, and not because they are the primary beneficiary. The person who pays premiums is the policyholder or premium payer, the policy owner is who holds the policy, and the primary beneficiary is who receives the payout.

Dependency in insurance means a person who relies on another for financial support. The statement that best fits defines a dependent as someone who depends on another for financial support—like a spouse or child—who relies on the insured for money for daily living and care. This distinction matters because dependents are typically covered under the policy based on that financial reliance, not because they are paying premiums or because they own the policy, and not because they are the primary beneficiary. The person who pays premiums is the policyholder or premium payer, the policy owner is who holds the policy, and the primary beneficiary is who receives the payout.