Which statement regarding a future increase option rider is INCORRECT?

The future increase option rider is a provision in some insurance policies that allows the insured to increase their coverage benefits at certain intervals or life events without needing to provide proof of insurability. This feature is particularly valuable as it helps to counteract the effects of inflation by allowing policyholders to adjust their coverage to maintain its value over time.

While increasing benefits typically does lead to higher premiums, the notion that premiums can increase without limitations is not accurate. In practice, there may be specific guidelines or caps on how much premiums can rise in conjunction with exercising this rider, particularly to prevent excessive cost increases that could push the insured out of the coverage.

Although the other statements align with common characteristics of a future increase option rider, the statement indicating that premiums could increase without limitations is misleading, making it the incorrect choice.