How does the insurer respond if the applicant's age is inaccurately reported at application, discovered after a claim?

When an applicant's age is reported inaccurately on a life insurance application and this discrepancy is discovered after a claim has been made, the insurer typically adjusts the death benefit rather than voiding the policy or ignoring the discrepancy. This is because the premiums paid are based on the insured's age, which is a critical factor in determining risk and the associated cost of coverage.

If the insured's actual age is younger than what was reported, the insurer may reduce the death benefit to the amount that the premiums would have purchased for the correct age. Conversely, if the reported age is younger than the actual age, the insurer adjusts the death benefit downward to reflect the higher risk associated with the insured's true age. This adjustment process allows the insurer to fairly uphold the terms of the policy while addressing inaccuracies in the application, rather than automatically voiding the policy or returning premiums, which would not adequately reflect the risk involved.

In this case, the adjustment to the death benefit is a common practice that maintains the integrity of the insurance contract, ensuring that both the insurer and the insured are treated equitably based on the true risk profile.