What is inflation protection in long-term care insurance?
Inflation protection automatically grows your daily or monthly benefit over time so it keeps pace with rising care costs. Because care costs climb for decades before most people claim, it is one of the most important features on a policy — often 3% compound.
Inflation protection is a rider that increases your benefit amount every year, so the coverage you buy today is still meaningful when you actually need care — often 20 or 30 years later.
It matters because care costs rise steadily. A $200/day benefit might be reasonable now, but without growth it would be far too small decades from now. The rider grows the benefit by a set rate each year (commonly 3%, sometimes 5%), either simple or compound.
It is the single most important feature for younger buyers, and Partnership policies require some inflation protection for buyers under certain ages.
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.
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