What best describes the benefit of a health policy that transfers payments to someone other than the policy owner?

The benefit of a health policy that transfers payments to someone other than the policy owner is best described as a beneficiary designation. In insurance terms, a beneficiary is an individual or entity designated by the policy owner to receive the benefits upon a specified event, such as the insured’s death or the occurrence of a covered incident. This practice allows the policyholder to ensure that benefits are allocated to the intended party, providing financial support where it is needed most, often to dependents or other loved ones.

In contrast, the other concepts do not accurately capture this particular aspect of health policies. Non-transferable benefits imply that the benefits cannot be transferred to someone else, which conflicts with the idea of naming a beneficiary. Assignability of benefits might suggest the ability to transfer rights or ownership of the policy itself, but it does not specifically refer to the practice of designating someone to receive benefits. Policy exclusion refers to certain conditions or circumstances that are not covered by the policy, which is unrelated to the designation of a beneficiary.

Thus, the key function of a beneficiary designation is crucial for ensuring that the intended recipient, rather than the policy owner, receives the benefits from the health policy, which aligns perfectly with the question's focus on transferring payments to another party.