Family Policy
A whole life policy on the primary insured with term riders on the spouse and children, providing compact family coverage.
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A family policy is best described as:
One policy that insures the parents and children under a single contract — A family policy is a single life insurance policy that covers more than one family member, usually the husband as the principal insured, the wife, and the children. The principal insured carries the main death benefit, while coverage on the spouse and children is typically smaller and may be in the form of term riders. It offers the convenience of one contract and one premium for the family's basic life insurance needs. The policy is an individual, not a group, arrangement even though multiple family members are protected under it.
National insurance concept
A family policy on a husband and wife typically provides:
Whole life coverage on the parents with small term insurance riders on each child — A family policy combines a whole life policy on the parents, typically the breadwinners, with small term insurance riders on each child, all under one contract with one premium. This special coverage design lets a family obtain permanent protection for the parents plus modest coverage for the children in a single policy. The children's coverage is usually term insurance that can be converted to permanent coverage at specified ages, often without evidence of insurability. It is an economical way to cover an entire family and is one of the special coverage forms listed in the exam outline. The parents' coverage carries the main face amount and builds the cash value.
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