Family Policy
What Does Family Policy Mean?
A family insurance policy is an insurance plan, typically for health or life insurance, that covers the head of the household and extends coverage to the rest of the family, often under different terms. Unlike individual policies for each family member, a family policy allows for coverage of all members under a single contract, simplifying the insurance process and potentially offering cost savings.
Insuranceopedia Explains Family Policy
One common type of family policy is a life insurance policy that offers whole life insurance coverage for the policyholder while providing term life insurance coverage for other household members. Additionally, children born after the policy has been issued will still be covered under it.
Furthermore, some family health insurance policies can extend coverage to certain family members who are not part of the policyholder’s household.
Bundling coverage for different individuals into a single family policy typically allows the policyholder to secure a lower premium than if they were to purchase individual policies for each family member.
