If a policyholder's age was understated on the application and they die from an accident, how will the insurer respond?

In situations where a policyholder's age is understated on an application, the insurer will often adjust the benefits according to the actual age at the time of application. Insurance premiums are typically calculated based on the age of the insured because older individuals generally pose a higher risk and therefore pay higher premiums. When a claim arises, if it is discovered that the age was misrepresented, the insurer will evaluate the claim based on what the premiums would have been had the correct age been provided.

This correct approach ensures that the insurance contract remains equitable. By adjusting the benefits according to the actual age, the insurer acknowledges the potential higher risk associated with the correct age and aligns benefits with the policy’s terms. This practice helps maintain fairness in the insurance process, ensuring that premiums reflect the appropriate risk while still providing some level of coverage instead of voiding the policy outright or paying reduced benefits based solely on age misrepresentation.