What type of policy ownership involves a spouse who maintains financial reliance on the insured?

In the context of life insurance policies, individual ownership refers to a situation where a single person, in this case, the spouse, owns the policy and is financially reliant on the insured individual. This arrangement typically implies that the spouse is both the policyholder and potentially the beneficiary, ensuring that they have a direct interest in the policy's benefits.

When an individual owns a policy, they possess the rights to make decisions regarding the policy, such as premium payments and beneficiary designations. This relationship supports the financial reliance aspect, as the insured person provides financial security for the spouse in the event of their passing, making it critical for the household's financial planning.

Other options, such as collaborative, third-party, or joint ownership, would not represent the same dynamic of reliance and direct ownership that characterizes individual ownership in this scenario. Collaborative ownership might imply shared responsibilities or decision-making, while third-party ownership indicates someone other than the insured owns the policy. Joint ownership would involve multiple individuals sharing ownership rights, which might dilute the financial reliance aspect seen in a spousal scenario. Therefore, individual ownership aptly describes the situation where a spouse depends financially on the insured.