For many families, a child reaching adulthood is an important milestone in financial and insurance planning. In many military and government-sponsored life insurance programs, children’s coverage often ends at age 18, or may extend to age 23, depending on eligibility. Because of this, many parents are accustomed to thinking about insurance independence much earlier.
For families raising a child with disabilities, however, these traditional timelines may not reflect reality.
When a child requires long-term care or ongoing support, financial responsibilities often extend well beyond early adulthood. For many families, this means conversations about insurance coverage and long-term financial planning begin earlier and continue longer than originally expected. In the United States alone, an estimated 11.2 million children have special health care needs—representing roughly one in five households.¹
For Members of The Uniformed Services Benefit Association® (USBA®) who have added Children’s Group Term Life Coverage under a USBA-sponsored life insurance policy, understanding how that coverage works allows families to make thoughtful decisions about the future.
How USBA Children’s Group Term Life Coverage Works
The Uniformed Services Benefit Association is a nonprofit that sponsors life insurance coverage for military personnel, federal employees, veterans, and their families through group policies underwritten by New York Life Insurance Company.
For eligible USBA Members, the Children’s Group Term Life Coverage Rider allows parents to add life insurance coverage for their children under a parent’s policy.
Coverage is available for eligible unmarried children ages 14 days through 25 years who meet dependency requirements (see Policy Details for more information).
Coverage amounts apply across all eligible children covered under the rider. The rider provides protection during childhood and early adulthood and is designed to continue through age 25, with termination typically occurring at age 26.
For many families, especially those familiar with coverage ending at age 18 or shortly after, this extended timeframe provides additional continuity during early adulthood.
For families raising a child with disabilities, understanding how USBA coverage transitions at age 26 becomes particularly important.
What Happens to USBA Children’s Group Term Life Coverage at Age 26?
Children’s Group Term Life Coverage Riders typically terminate when the child reaches age 26. At that point, families have a limited opportunity to apply for individual life insurance coverage, depending on the policy terms.
Because individual policies often require medical underwriting, understanding available options before the rider reaches its termination date is important.
For families seeking life insurance coverage for an adult child with disabilities, underwriting considerations could affect future eligibility for coverage. Reviewing coverage in advance helps families better understand what options are available.
It’s important to note that children of USBA Members can be sponsored ages 18–25 for their own policy as long as they are not married, in the military, or a current federal employee.
Can Children’s Group Term Life Coverage Continue After Age 25 if a Child Has a Disability?
In certain circumstances, children with qualifying physical or mental disabilities—including some developmental or cognitive conditions—may be able to continue Children’s Group Term Life Coverage beyond age 26 if approval is obtained within the required timeframe.
Documentation might be required, and approval is not automatic. Families should contact USBA well before the rider termination date to understand what information may be needed and what options may be available.
Addressing coverage questions early allows families to avoid last-minute decisions and gather any required documentation.
Financial Planning Considerations for Families Raising a Child With Disabilities
Families raising a child with disabilities often take a longer-term approach to financial planning.
Caregivers may adjust work schedules or career paths to provide ongoing care and support. Over time, these decisions can affect retirement savings, pension accumulation, or other long-term financial considerations.
Some families also acknowledge the difficult possibility that a parent could outlive their child. While this is not easy to discuss, considering that possibility is part of responsible long-term planning.
Life insurance proceeds are generally paid to designated beneficiaries and can provide financial resources during a difficult time.
Families reviewing their coverage may also wish to periodically review their beneficiary designations to ensure they reflect their current wishes. For additional guidance, read our blog on how veterans can choose the right life insurance beneficiary.
Legal Planning Tools Some Families Consider
Some families incorporate legal planning tools such as special needs trusts as part of broader long-term financial planning.
These trusts are sometimes used to provide financial support for a person with disabilities while preserving eligibility for certain public benefits.
Because trust and beneficiary planning can involve legal and tax considerations, families should work with qualified legal or financial professionals to determine what arrangements are appropriate for their situation.
Reviewing Coverage as Your Child Approaches Adulthood
Life insurance reviews are often treated as routine. For families raising a child with lifelong care needs, they play an important role in long-term financial planning.
For many military families, coverage conversations may begin earlier due to traditional age 18 milestones. However, USBA’s extended coverage period allows for additional time to evaluate options and plan thoughtfully.
Health conditions can fluctuate over time, and caregiving duties may also shift. Additionally, military life often brings changes like PCS moves, retirement decisions, or changes in income.
Periodic coverage reviews allow families to:
- Confirm rider termination dates
- Understand conversion opportunities
- Review beneficiary designations
- Consider long-term caregiving plans
Taking time to review coverage before age 26 provides clarity about available options.
Planning Life Insurance Coverage Beyond Age 18—and Through Age 25
For many military families, life insurance planning for children often begins with an expectation that coverage will end around age 18, or shortly after depending on eligibility.
USBA’s Children’s Group Term Life Coverage extends beyond that traditional timeline, with coverage designed to continue through age 25.
For parents raising a child with lifelong needs, financial responsibility often continues well into adulthood. Understanding how Children’s Group Term Life Coverage works—and how it differs from more traditional age-based coverage expectations—allows families to make informed decisions about the future.
For military families accustomed to planning ahead, reviewing coverage, asking questions, and understanding timelines before this milestone helps ensure that important protections and planning considerations remain in place.
Members who have questions about their Children’s Group Term Life Coverage or how coverage applies to their family’s situation can contact a USBA Product Specialist to review their policy and better understand what options are available.
Note: There is an aggregate maximum per child of $25,000 of Life Insurance under all USBA Group Life Policies. $25,000 aggregate maximum includes all child coverage under Group Policy G-5393-0 and G-5393-2.
- Families with special needs children: family health, functioning, and care burden https://pubmed.ncbi.nlm.nih.gov/25428686/. Accessed 13 March, 2026