Dependent

What Does Dependent Mean?

A dependent is a child, young person, or other individual (as defined by tax law) under the financial care of a parent or another adult responsible for their well-being. Individuals responsible for dependents may qualify for tax credits or exemptions. For someone to be officially claimed as a dependent, certain criteria must be met. In terms of insurance, health coverage for parents or legal guardians often extends to their dependents. Plans can differ in who qualifies as a dependent and how much it costs to add them, which is worth checking before you choose a health insurance plan.

Insuranceopedia Explains Dependent

An example of a dependent is a child of a married couple. However, in addition to their children, married couples may also have other dependents, such as a niece, nephew, or foster child. They might also meet the qualifications to claim another adult as a dependent. For someone to qualify as a dependent, they must live in the same residence as the taxpayer, who must cover more than half of their expenses. Health insurance policies may have additional requirements for dependent coverage or may extend coverage to college students living away from home. Since claiming a dependent means one adult pays most of their expenses, life insurance is a common way to keep those expenses covered if the main earner dies. The average cost of life insurance tends to be higher for people supporting more dependents, since they usually buy larger policies.