What must a health insurance policy do if the insured parent passes away while their child is under coverage?

When a health insurance policy covers a child and the insured parent passes away, it is crucial for the policy to ensure that the child's coverage remains intact until they reach a certain age. This provision plays a vital role in ensuring that dependents are protected and have access to necessary medical care despite the unfortunate circumstance of losing their parent.

Typically, health insurance policies stipulate that coverage for dependent children continues until they reach a specified age, which often aligns with the age of majority or a defined limit, such as 26 years old in many cases. This allows the child to maintain their health insurance during a potentially challenging time, without the immediate need to seek new coverage or face a gap in healthcare services.

The other options suggest immediate termination or alterations to the policy that would not provide the necessary coverage continuity for the child. Thus, the requirement for coverage to persist until a predetermined age is essential for safeguarding the child's well-being in such a situation.