Which clause adjusts benefits based on the correct age if misstated?

The clause that adjusts benefits based on the correct age if misstated is known as the misstatement of age clause. This clause is an essential feature in life insurance policies that ensures the accuracy of the insured's age is upheld. If a policyholder provides incorrect information about their age, this clause allows the insurer to recalculate the benefits payable to reflect the correct age at the time of claim.

For instance, if a policyholder mistakenly states a younger age than their actual age, the insurer can adjust the death benefit or premium calculations. Depending on the true age, the death benefit might be lower if the policyholder is older than they claimed, or premiums may be adjusted accordingly. This helps to maintain fairness and accuracy in the life insurance contract, preventing any potential discrepancy that could arise from inaccurate age reporting.

The other options do not accurately describe the specific mechanism or terms used in insurance policies to adjust benefits based on age errors. They may refer to related concepts, but they lack the exact definition and function of the misstatement of age clause, which is specifically designed for this purpose.