What will an insurer do if a representation on a life insurance policy application regarding the insured's age is discovered to be inaccurate, with the insured being 10 years older than stated?

When an insurer discovers that a representation regarding the insured's age on a life insurance policy application is inaccurate, it typically leads to a recalibration of the death benefit. In this case, since the insured is found to be 10 years older than stated, the insurer would not simply pay the full death benefit as initially underwritten. This is because premiums are based on the age of the insured at the time the policy is issued; older individuals generally have higher insurance risks.

By adjusting the death benefit downwards, the insurer aligns the payout with the risk associated with the actual age of the insured. This practice ensures that the insurer is not exposed to undue risk and is compensating the benefit in accordance with the true age. Therefore, a reduced death benefit is a common practice in such scenarios, reflecting the actual situation and the associated premiums that should have been charged had the true age been disclosed during the application process.