Upon reaching the limiting age, a handicapped child can extend their health insurance coverage as a dependent:

The correct choice indicates that a handicapped child can extend their health insurance coverage as a dependent if they are incapable of employment and chiefly dependent on the policy owner. This reflects the insurance provision known as "dependent coverage extension," which aims to support families with children who are disabled and unable to earn an income.

Many health insurance policies allow for the extension of coverage for dependents past the typical limiting age, often set at 26 years, specifically in the case of those with disabilities. The emphasis on the child being incapable of employment and chiefly dependent helps ensure that the coverage remains available for those who genuinely require ongoing support due to their handicap.

In contrast, the other options do not align with this policy. For instance, it is not enough for the child to be capable of employment or attending school full-time because these statuses do not universally establish the need for continued dependent coverage. Additionally, the notion of extending coverage regardless of dependency overlooks the requirement that the child must primarily rely on the policy owner, which is a key factor in determining eligibility for continued health insurance benefits.