In a decreasing term policy, which credible statement is incorrect about the premiums?

In a decreasing term policy, the premiums are typically fixed for the duration of the term, meaning that policyholders will pay the same amount throughout the life of the policy, even as the death benefit decreases over time. This means that the overall cost does not increase; rather, the payout decreases.

Option A states that the total premiums increase throughout the policy term, which is not accurate for a decreasing term policy. This type of policy is designed such that although the death benefit decreases, the premium remains constant, making it accessible for individuals who may want lower premium payments.

The other options provide valid statements. The total premium paid does not equal the benefits received because the benefits are designed to decrease over the term, while the premiums remain level. Additionally, premiums can indeed be higher for longer terms, reflecting the greater risk incurred by the insurer over a more extended coverage period, but once set, those premiums do not increase within the term of the policy.