Which of the following is an example of a long term need?

The correct choice emphasizes the enduring nature of certain needs, particularly in financial planning. A dependent being covered for the rest of their life signifies a long-term need because it addresses ongoing financial security for that individual over an extended period or lifetime. This demonstrates a recognition of the inherent responsibilities that come with dependents, such as ensuring their well-being through adequate funding for necessities like education, healthcare, and living expenses.

In contrast, the other options represent more immediate or temporary financial commitments. For instance, a 5-year loan is a short to medium-term obligation, typically requiring payments over a limited timeframe without extending beyond its term. Similarly, short-term income is designed to fulfill current, immediate needs rather than providing long-term security. Lastly, a holiday fund is geared towards a specific event occurring in the near future, lacking the extended timeframe that characterizes long-term financial needs.