If an applicant misstates their age on an insurance application, what is the potential outcome?

When an applicant misstates their age on an insurance application, the potential outcome generally involves adjusting the death benefit based on the correct age. Insurance policies often include provisions that address the consequences of misstatements about age. Since the premium for life insurance is typically based on the applicant's age at the time of issue, when the correct age is revealed, the insurer determines the appropriate benefit amount based on the actual age of the insured.

In the event of a claim, if the insured was younger than stated on the application, the death benefit would typically be increased to reflect what the premium would have purchased had the correct age been provided. Conversely, if the insured was older than stated, the benefit might be reduced to what the premiums would have warranted for the correct age. This adjustment ensures that the insurance coverage aligns with the actuarial risks associated with the correct age of the insured, maintaining the integrity of the insurance contract.

In this context, while policies may vary in language and specifics, the fundamental principle is that misstatements of age are material, and thus correcting the death benefit according to the accurate age aligns with standard practices in the insurance industry.