Which situation might lead to an increased payable amount under life insurance upon age misstatement?

When an individual misstates their age on a life insurance application, if it is discovered that the insured is younger than they claimed, the insurer may pay a higher benefit in the event of a claim. This is because life insurance premiums are calculated based on the insurer's assessment of risk, which includes the insured's age. If the insured is actually younger than what was stated, they would have been paying lower premiums than required for their true age. In such cases, the insurer typically corrects the premium based on the accurate age but is also obligated to pay out the full coverage amount, taking into account the correct (younger) age at the time of death. This can lead to an increased payable amount because the benefit amount does not change based on age but the premiums would have adjusted if the correct age had been reported from the beginning.