What occurs if the age of the insured is misrepresented?

When the age of the insured is misrepresented on a life insurance application, the insurer typically has the right to adjust the face amount of the policy based on the correct age. This adjustment is crucial because life insurance premiums and benefits are closely tied to the age of the insured. An older applicant usually presents a higher risk to the insurer, which may lead to higher premiums and lower benefits than those set for a younger individual.

If the misrepresentation is significant, the insurer may calculate what the premium would have been had the correct age been disclosed. Consequently, they can offer a new policy amount that reflects this adjustment. This action helps ensure that the policy accurately represents the risk level and financial implications associated with the insured's true age.

It is important to note that simply voiding the policy or increasing premiums automatically would not be the standard practice in response to age misrepresentation; instead, adjusting the benefits keeps the contract viable and ensures that the policy remains fair to both the insurer and the insured.