Definition - What does Family Policy mean?
A family insurance policy is an insurance policy, usually for health or life insurance, that covers the head of a household and also provides coverage for the rest of the family, sometimes under different terms. Unlike getting individual policies for each member of the family, a family policy can provide coverage for every member under a single contract.
Insuranceopedia explains Family Policy
One common type of family policy is a life insurance policy that provides whole life insurance coverage for the policyholder and term life insurance coverage for the other members of the household. Children born after the policy has been issued will still be covered by it.
Some family health insurance policies, moreover, can provide coverage to certain family members who are not part of the policyholder's household.
Bundling coverage for different individuals into a single family policy normally allows the policyholder to secure a lower rate for the insurance than they would have to pay if they purchased individual policies to insure each member of the family.