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A single Office 365 subscription apparently "covers the entire household": "You can each sign-in with your individual Microsoft accounts using your settings and accessing your documents, but you still need just one subscription".

I bought it with my account, hence I guess there should be some way to tell it which other accounts are part of my household, so that they can download it. However, I haven't found anything like that in the web interface. So, how do I install the copies for the rest of the family?

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Plese refer to thefollowing link and look for the section called "Ability to use Office on up to 5 PCs or Macs shared among all users in the home"

Install Office 365 Home Premium on a family member's computer

Relevant:

1.

On the computer where you want to install Office, go to Office.com and sign in with your Microsoft Account.

2.

Now, anyone who uses this computer will have a full copy of Office. All they need to do is open an Office program and sign in with their Microsoft Account.

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Ok, I misread that article. The relevant part is: "Ability to use Office on up to 5 PCs or Macs shared among all users in the home". –  Lohoris Oct 15 '13 at 7:37
    
Edited the answer to include the section. –  Supun Oct 17 '13 at 12:32
    
I've also added some bits which were the focus of my confusion. –  Lohoris Oct 17 '13 at 12:44

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