James misstates age on a life policy; death benefit amount is?

• A. The death benefit is based on the insured's actual age at death
• B. The death benefit paid will be what the premium would have purchased at the correct age
• C. The death benefit is the original face value
• D. The death benefit is equal to cash value

Answer: (B)

Misstatement of age on a life policy is handled by a misstatement of age provision. When the insured’s age is misstated, the insurer uses the correct (actual) age to determine how much life insurance the premiums paid would have purchased. The death benefit is then that amount, not the original face value. This keeps coverage aligned with the actual risk and premiums provided.

For example, if the premiums paid would have bought $X of coverage at the insured’s true age, the death benefit will be $X. It’s not determined by the age at death, nor is it automatically the original face value or the policy’s cash value.