Quick Answer
Inflation protection is a Long-Term Care Insurance add-on that regularly increases the policy's benefits to keep up with rising care costs.
Detailed Answer
Inflation protection is a rider available for purchase with Long-Term Care Insurance policies. This add-on can provide additional benefits over time to address the higher care costs due to inflation.
Policyholders often have a choice between simple or compound inflation protection. Simple inflation adds the same dollar amount to the monthly or daily benefit each year.
Compound inflation increases benefits by a percentage of the current benefit. Since care costs increase sporadically, compound inflation protection generally keeps pace with care costs better than simple protection.
It's also important to note that most people with a partnership Long-Term Care Insurance policy must have compound inflation protection to qualify for partnership benefits. Each state has different requirements, which you can learn more about with our article on partnership Long-Term Care Insurance policies.
LTC News Trusted & Verified
Work With a Trusted Specialist
Get Accurate Long-Term Care Insurance Quotes
- Has substantial experience in Long-Term Care Insurance
- Strong understanding of underwriting, policy design, and claims experience
- Represents all or most of all the leading insurance companies
