When an insurer discovers that the insured's age was accidentally misstated on the application, the insurer will likely?

The insurer's response to the accidental misstatement of the insured's age is to ensure that the benefits align with what the premiums would have been calculated for the insured's actual age. When an insured's age is misstated, this can affect the premiums and the coverage amount because life insurance rates are based on the age of the insured at the time of application.

If the insurer discovers that the insured is younger than indicated, they will typically adjust the policy to reflect what the premiums would have purchased at the correct age, ensuring that the insured receives the appropriate level of coverage based on their actual risk profile. Conversely, if the insured is older than stated, the insurer may adjust the death benefit downward to correspond with the premiums that were paid, but the correct approach in terms of typical insurance practices is to pay the amount that the premiums would have purchased at the actual age.

This practice aims to maintain fairness in the insurance contract and uphold the principles of insurable interest, ensuring that both the insurer and the insured are treated equitably based on truthful representations.