What happens if there is a misstatement of age in a life insurance policy?

When there is a misstatement of age in a life insurance policy, the correct response is that the death benefit will be adjusted based on the correct age. This means that if the insured person's age was stated incorrectly at the time of application, the insurer will evaluate the life insurance coverage based on the accurate age of the insured.

Typically, if the insured is actually older than stated, the death benefit could be reduced, since higher age may correlate with higher risk and lower coverage amounts. Conversely, if the insured is younger than stated, the insurer may pay a higher death benefit, assuming the premiums paid correspond to that age. This approach ensures that the coverage remains equitable based on the actual risk presented by the insured's age, rather than being invalidated or automatically canceled.

By adjusting the death benefit rather than voiding the policy or canceling the coverage, the insurance provider maintains a fair balance of coverage and risk based on accurate information. This method is a standard practice in life insurance to maintain contract integrity while also compensating for any inaccuracies in application data.