What can an insurer do if an applicant misstates their age on a life insurance application?

When an applicant misstates their age on a life insurance application, the insurer has the option to adjust the benefits based on the correct age information. Life insurance premiums are typically calculated based on the applicant's age at the time of application, as age is a significant factor in determining both risk and coverage costs.

If the insurer discovers that the applicant is older than stated, they may adjust the policy benefits to align more closely with what would have been provided if the correct age had been disclosed. This means that the death benefit or coverage amount could be reduced accordingly to reflect the higher risk associated with the true age of the insured.

In instances where misrepresentation is considered significant, the insurer would want to fairly align the policy's terms with the actual risk presented by the insured's age rather than penalizing the applicant outright through denial or cancellation, which are more extreme measures. This approach helps uphold the principle of equity in insurance contracts.