What will the insurance company pay if there is a misstatement of age at the time of purchase?

If there is a misstatement of age at the time of purchase, the insurance company will adjust the policy's payout based on the correct age of the insured. This means that the face amount of the insurance policy will be recalculated according to the premiums that would have been charged had the correct age been provided.

Policies often include a clause regarding the misstatement of age to ensure fair treatment for both the insurer and the insured. For instance, if a person falsely states they are younger than they actually are, and the premiums paid are therefore lower than what should have been charged, the insurer will provide an adjusted death benefit. This adjustment typically entails comparing the actual premiums that would have been paid at the correct age to the premiums that were paid. The policy will then pay the face amount based on this recalculation, ensuring it reflects the risk associated with the true age of the insured.

Thus, the correct answer captures the fundamental principle of fairness and balances the interests of both parties involved.