Under the misstatement of age provision, what happens if it is determined at death that the insured's age or gender was misstated on a life insurance policy application?

The misstatement of age provision in life insurance policies serves to alleviate the consequences of honest mistakes made during the application process regarding the insured's age or gender. When there is a discrepancy in the stated age or gender at the time of the insured’s death, the insurer adjusts the policy benefits based on what premiums would have purchased if the correct age or gender had been disclosed.

This adjustment ensures fairness in the insurance contract; it does not penalize the policyholder for inadvertent errors but rather aligns the benefits with the premiums that were paid under the incorrect age or gender information. Thus, the insurer calculates the benefit amount to reflect what would have been provided had the correct details been stated, maintaining equity in the risk assessment and pricing of the policy.

The other choices do not accurately reflect the purpose or application of the misstatement of age provision. Voiding the policy outright would be an extreme measure and not typical in cases of honest mistakes. An adjustment to the benefits based solely on the correct face amount would not take into account the underwriting principles tied to age and gender. Charging additional premiums for the incorrect age also contradicts the fundamental practices surrounding life insurance, which is focused on equitable adjustments rather than penalties for mistakes.