Should I choose simple or compound inflation protection?

Both options increase your benefit each year, but they compound very differently:

• Simple: adds a flat amount each year based on your original benefit (for example, 3% of the starting amount every year).
• Compound: grows by the percentage of the current, growing benefit each year — so it accelerates over time.

The gap is large over decades. A $200/day benefit at 3% grows to roughly $350/day after 25 years with simple, but about $419/day with compound — and the difference keeps widening.

Rule of thumb: if you buy in your 50s or early 60s, compound is almost always worth the higher cost because it has decades to work. In your 70s, simple can be a reasonable way to lower the premium, since there are fewer years for compounding to matter.

General information only. This is educational and not insurance, legal, tax, or financial advice. Rules and products vary and change — confirm the specifics with a licensed professional.