What is typically adjusted due to a misstatement of age in an insurance policy?

In the context of insurance policies, when there is a misstatement of age, it often leads to an adjustment in the premium amount. Insurance premiums are calculated based on various factors, including the insured's age, as age significantly influences the likelihood of claims being made. When an applicant provides an incorrect age, the insurer may have not accurately assessed the risk associated with that policyholder, resulting in a premium that is either too high or too low.

If the age is misstated and then corrected, the insurer will recalculate the premium to match the proper age and corresponding risk profile. For instance, if a policyholder is older than initially stated, the premium might increase due to the higher risk of death or illness associated with older age. Conversely, if the policyholder is younger than stated, the insurer may reduce the premium correspondingly. This adjustment ensures that the insurance coverage reflects the true risk, which is essential for both the insurer and the insured.