Misstatement of age occurs when the age of the insured is recorded incorrectly on a life insurance application or policy, whether due to an honest mistake, misunderstanding of nearest-age rules, or intentional misrepresentation. Because age is a key factor in determining premium rates and underwriting eligibility, carriers include a misstatement of age provision in most policies. This clause typically states that if an error is discovered at death or during the policy's term, benefits and premiums will be adjusted to reflect the correct age rather than voiding the contract. If the insured was actually older than stated, the death benefit may be reduced to the amount that the paid premium would have purchased at the correct age. Conversely, if the insured was younger, the carrier may increase the benefit or refund excess premiums. Misstatement of age provisions help maintain fairness and prevent coverage from being invalidated solely because of an age error.

In day-to-day practice, misstatement of age is usually addressed at application, when agents verify dates of birth from driver's licenses or other documents. Some issues arise when clients are accustomed to stating their "insurance age" based on nearest birthday rather than actual age, or when records from another country cause confusion. If a discrepancy is discovered after issue but before a claim, carriers may correct the age and adjust future premiums or values. At death, claims departments review the insured's official date of birth and apply the misstatement of age provision if necessary. Advisors explain to beneficiaries that this is a contractual adjustment, not a claim denial. Training for producers emphasizes accurate data gathering and explaining how misstatement of age provisions protect both the insurer and policyholder by preserving the contract while ensuring benefits match the risk actually assumed.