Question

If an insured's age on a life insurance policy has been misstated on the life insurance contract, the Misstatement of Age provision requires that any death benefit payable would be__________.

Answer 1

The Misstatement of Age provision adjusts the death benefit payable to reflect the proper amount for the insured's correct age. If the insured is older, the benefit would be reduced, and if younger, it could be increased.

Step-by-step explanation:

When an insured's age is misstated on a life insurance contract, the Misstatement of Age provision typically states that the death benefit payable would be adjusted to reflect what the premium would have purchased at the correct age. For example, if the insured is actually older than stated on the policy, the death benefits would be reduced because premiums for older individuals are higher for the same amount of coverage. Conversely, if the insured is younger, the death benefit might be increased.