Family health insurance is meant for the entire family members. It provides a fixed daily payment for a stated number of days each year to cover the cost of the hospital room and board. It also covers laboratory tests, x-rays, medications, nursing services, and the use of an operating room. Chemotherapy and radiation will be also covered by family health insurance. If there is a surgery, it covers the surgeons operating fees. Many policies pay the total cost of such fees to a reasonable and customary limit. But if the surgeon charges a higher fee, the insured person must pay for the additional cost.

Mostly such policies are subjected in the working place itself. In certain multinational companies a part of the salary will be credited for such health policies for all the family members. Pregnancy and delivery charges will also be paid by the insurance company. Moreover treatment of cancer patients will also be subjected to this policy.