What happens if there is a misstatement of age in an insurance contract?

When there is a misstatement of age in an insurance contract, the policy benefit is adjusted according to the correct age. This means that if the insured provides an incorrect age that impacts the premium or the benefits provided by the policy, the insurer will recalculate the benefits based on the accurate age of the insured.

Insurers typically include a clause in their policies that stipulates adjustments will be made in the event of age misstatements. This approach helps maintain fairness in the underwriting process, as premiums and benefits are often contingent on the insured's age. For example, if an individual misstates their age and is older than they claimed, the insurer may reduce the policy benefits accordingly, reflecting the risk associated with the actual age.

This practice underscores the importance of providing accurate information when applying for insurance, as it ensures that all parties involved understand the terms and risk associated with the contract.