If an insured misstated their age on a disability income insurance application, what action is the insurer most likely to take upon discovering the true age?

When an insured misstates their age on a disability income insurance application, the insurer is most likely to adjust benefits downward based on the correct age. Insurance policies often have premiums and benefits that are closely tied to the insured's age, as this factor greatly influences the risk associated with insuring an individual.

If the insurer discovers that the insured is older than initially reported, this could result in higher premiums or reduced benefits compared to what would have been originally issued for the correctly stated age. The insurer does not typically deny the claim outright unless age misrepresentation fundamentally alters the risk profile, nor do they cancel the policy outright as an initial step. Instead, adjusting the benefits is a common and reasonable response, aligning the policy's benefits with the risk associated with the insured's true age.

For example, if a young individual applied for coverage but was actually much older, the insurer could provide benefits that reflect what someone of that correct age would qualify for, thereby mitigating the risk they would assume under the original terms of the policy. This approach allows the insurer to maintain the contract while ensuring that the benefits are commensurate with the true risk.