What happens if a misstatement of age is discovered in an insurance policy?

If a misstatement of age is discovered in an insurance policy, the coverage will be adjusted to reflect the insured's true age. This means that the insurance company will recalculate the benefits or premiums based on the correct age of the insured.

Insurers rely heavily on age when determining premiums and coverage limits because age is a critical factor in assessing risk and the potential lifespan of the insured. If a person misrepresents their age on the application, the insurer has the right to correct the terms of the policy to align with the actual age. For example, if someone aged 50 claims to be 45 and a claim is made, the insurer would evaluate what the coverage or premium would have been based on the true age of 50. Consequently, this adjustment can lead to an increase or decrease in the benefits provided or in the premiums charged, ensuring that the insurer's risk is accurately reflected according to the true age of the insured. This approach encourages honesty in applications without entirely voiding or penalizing the coverage unless the misstatement is significant enough to warrant severe action.