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Long Term Care Insurance Terms
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| INFLATION PROTECTION Increases the daily benefit amount on an annual basis. If elected, increases benefits in order to protect against the effects of inflation. Most common is the Compound 5% Inflation Rider which increases the daily benefit amount each year by 5% of the previous years daily benefit amount. The compound effect really begins to take off around the 20th year, so if you are younger when you buy, this seems to be the best choice. If you are in retirement, it's a toss-up between paying for the extra protection or simply starting out with a higher daily benefit at the beginning. |
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