Definition (1):
Misstatement of age or sex clause is a contractual provision in a life insurance policy stating that if the insured’s age or sex is misstated, the amount payable is the amount that the premium would have purchased at the correct age or gender.
Definition (2):
The misstatement of age or sex clause permits the insurer for adjusting the payable benefits when the insured’s age or sex was incorrectly mentioned at the time application for the policy was done. In this case, the amounts of benefit payable will be exactly the same as the paid premiums would have been had they been bought at the correct age or sex. Because a life insurance policy’s premiums are based mostly on age and sex, if the policy-holder had been paying lower premium rates (depending on incorrect information), the policy’s proceeds should be adjusted according to that. The difference between what the person should have been paying and what was really paid would be subtracted from the death benefit paid to the beneficiary. The misstatement of age or sex clause is an exception to the Time Limit on Particular Defense Clause as it will be impacted whenever the error is found, even more than two years.