CPI-Based Inflation
What Does 'CPI-Based Inflation' Mean?
An option that is offered on several Long-Term Care Insurance policies provides the insured the ability to increase their benefits on an annual basis based upon the Consumer Price Index
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CPI-based inflation is an insurance add-on for Long-Term Care Insurance policies. This option allows the insured individual's insurance benefits to increase based on the Consumer Price Index (CPI).
The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
When benefits increase based on CPI, they help the policy retain its value against inflation and rising care costs.