A family health insurance plan, also known as a family floater plan, provides a single policy to cover multiple family members, including spouses, children, and sometimes parents. This plan operates on a shared-sum concept, where one collective coverage limit is available to all insured individuals, potentially reducing costs compared to individual policies. Premiums are typically based on the age of the oldest member, making it more affordable for younger families. While offering convenience and shared coverage, adding older parents can increase premiums due to higher risk.