Fred bought life insurance when he was 47, although he told the insurance company that he was 42. He has since died. Which of the following provisions will affect the amount of money his beneficiaries will receive?

Question

Quizplus · Accepted Answer

The misstatement of age provision allows the insurance company to adjust the death benefit payout based on the correct age of the insured at the time the policy was issued. Since Fred provided false information about his age, this provision will likely be applied, potentially resulting in a reduced payout for his beneficiaries. The incontestability clause pertains to the contestability period during which the insurance company can dispute claims due to misrepresentation or fraud, but it does not affect the payout amount. Naming a beneficiary, policy reinstatement, and the grace period are not relevant to this situation.

Fred Bought Life Insurance When He Was 47, Although He