Thing from Below reads "Costs (1) less for each Totem you've summoned this game." which implies that a played or summoned totem, even if it dies before the Sequence finishes, should still discount it. (For comparison, think about triggers on summoning a minion like Steward of Darkshire - they trigger after the On Play Phase before death processing happens.)
However, if you play a totem and it dies before the After Summon Phase, your Thing from Below will not reduce in cost.
Thing from Below reads "Costs (1) less for each Totem you've summoned this game." which implies that a played or summoned totem, even if it dies before the Sequence finishes, should still discount it. (For comparison, think about triggers on summoning a minion like Steward of Darkshire - they trigger after the On Play Phase before death processing happens.)
However, if you play a totem and it dies before the After Summon Phase, your Thing from Below will not reduce in cost.
This is because the cost reduction happens in the After Summon Phase.