What happens if the insured experiences a misstatement of age?

When there is a misstatement of age by the insured, the primary course of action is to adjust the insurance coverage to reflect the insured's true age. Life insurance premiums and the amount of coverage are typically based on the insured’s age at the time of application. If the age is reported inaccurately, the insurer has the right to amend the policy based on the correct age information.

For instance, if an individual states that they are younger than they actually are, the premiums calculated and the benefits provided would be based on this lower age. In the event the insurer discovers the misstatement, they will recalibrate both the premium and coverage according to the actual age. This can result in either increased premiums or reduced benefits, depending on how the true age compares to the stated age.

In contrast, other options misrepresent the policy's typical handling of such situations. Immediate lapse of the policy or rendering the policy void would generally not occur solely due to a misstatement of age. Instead, the policyholder would usually be informed of the revised terms based on accurate age information, allowing them an opportunity to review the adjusted terms.