What amount will the insurer pay if there is a misstatement of age at the time of purchasing a policy?

When a policyholder misstates their age at the time of purchasing a life insurance policy, the insurer will typically adjust the face amount of the policy based on the corrected age. This is reflected in the calculation of the death benefit; the insurer will pay an amount proportional to what the premium would have purchased had the correct age been disclosed.

If the insured's age had been stated accurately, the premiums may have been higher or lower, which directly influences the death benefit amount. For example, if the insured is younger than stated, they may have paid lower premiums for a greater coverage, or conversely, if they are older, the coverage may be less than indicated by the original face amount. Therefore, the company adjusts the payout to reflect what would have been provided had the correct age been used during underwriting.

The other responses do not accurately address the insurer's obligation in the case of a misstatement of age, as they either focus on premiums paid without consideration of adjusted coverage or present options that do not align with standard insurance practices.