Question

W gave w's age as 50 when w purchased a life policy. at the time of w's death seven years later, the company discovered w's true age at issue had been 59. what would the normal procedure be under the misstatement of age provision in regard to the payment of the death claim?

Answer 1

W understated his age at the time he wanted to purchase the insurance policy; he was 52 then but he stated his age as 50. The normal procedure under the misstatement of age provision in regard to the payment of the death claim is that THE AMOUNT THAT WILL BE PAID TO W'S BENEFICIARIES WILL BE EQUIVALENT TO THE AMOUNT THAT THE PREMIUM WOULD HAVE BOUGHT IF THE CORRECT AGE HAD BEEN STATED.