If an insured's age is misstated on a life insurance application, what is likely to happen when a claim is made?

When a claim is made and there is a misstatement of age on a life insurance application, the likely outcome is the payment of a reduced death benefit. Insurance contracts are based on the principle of having accurate information, particularly regarding the insured's age, which directly influences the premium rates and the coverage amount.

If an insurer finds that the age of the insured has been misstated, they will first assess what the premiums would have been if the correct age had been provided. The policy is then adjusted to reflect this accurate information. As a result, the death benefit amount may be recalculated based on the correct age. This practice ensures that the insurance company can maintain fair pricing and underwriting standards while also ensuring the beneficiaries receive a benefit reflective of the premiums paid based on the correct age.

Thus, while the insured may have intended for a larger payout based on a misrepresented age, the outcome in the event of a claim will be the distribution of a death benefit that aligns with what the premiums would have purchased based on the actual age of the insured.