What is a consequence of a misstatement of age on a life insurance application?

A misstatement of age on a life insurance application can lead to a change in benefits to align with the premium payments based on the correct age. When an applicant provides an incorrect age, the insurer calculates premiums and coverage amounts according to that incorrect data. If the true age is greater than what's stated, the premiums paid may be lower than required for the actual risk, leading to insufficient coverage. In such cases, the insurer would typically adjust the benefits rather than deny the policy or cancel it outright. This adjustment ensures that the coverage is appropriate for the risk associated with the insured’s actual age, reflecting an equitable arrangement between the insured and the insurer.