Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
A family policy is best described as:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
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.
Why the other options are wrong
- B) Bindered combinations are not used in life insurance; a family policy is one contract covering multiple lives, not separate policies bundled together. Bindered combinations are not used in life insurance at all, so this description is mistaken.
- C) A family policy covers more than the breadwinner; it includes the spouse and children under the same contract, even if their coverage is smaller. The policy's design specifically provides coverage to multiple family members rather than one person only.
- D) A family policy is an individual policy issued to the family, not a group policy issued to an employer; group coverage is a separate arrangement. The family policy is an individual contract between the insurer and the family, not a workplace benefit.
Memory hook
One contract, whole household. Family policy = parents plus kids under one roof.