Which type of insurance requires the insured to pay premiums before they can access benefits?

The correct answer highlights that individual insurance requires the insured individual to pay premiums before they can access the benefits. In individual insurance, the policyholder makes regular premium payments, which directly contribute to the coverage provided by the insurance policy.

This structure is designed to protect both the insurer and the insured. By paying premiums, the individual ensures that their coverage remains active and that they will be eligible for benefits when needed. The premium acts as a form of financial commitment to maintain the insurance policy.

In contrast, non-contributory insurance does not require individual premiums from insured members; the employer or organization fully funds the coverage. Group insurance typically distributes costs across a group, often through employer contributions, which can blur the line of individual responsibility for premium payments. Self-funded insurance involves a plan where an employer assumes the financial risk rather than transferring it to an insurance company, generally not requiring individual premiums in the same way.

Thus, individual insurance stands out as the type where premium payments must be made by the insured to access specific benefits when necessary.