Which statement is FALSE about a decreasing term policy?

In a decreasing term policy, the premium amount remains constant throughout the duration of the contract, rather than steadily declining. This type of policy is designed with a face amount that decreases over time, often aligned with the repayment schedule of a debt, for instance, a mortgage. As the risk to the insurer decreases because the face amount diminishes along with the insured's debt or obligation, the premium remains fixed, providing affordability while offering decreasing coverage.

The second choice correctly states that decreasing term policies generally have a lower premium compared to level term policies, as they provide less coverage over time. The third choice highlights that these policies do not accumulate cash value nor do they pay out any amount after the term, aside from the death benefit during the covered period, which is an important characteristic of this type of insurance. Lastly, the assertion that the face amount steadily declines is true and consistent with the nature of decreasing term policies, as they are specifically designed for that purpose.