– It’s never easy to set out a good retirement plan even if you think you are well equipped with the right tools and information to go about it. However, planning early is still something that everyone should consider especially if they want to protect a good amount of savings and assets for their family.

Part of a good retirement plan is having coverage for long term care needs in the future. This entails purchasing an affordable, yet complete long term care insurance policy that fits one’s needs and lifestyle.

What is Inflation Protection Rider?

There are a lot of “movable parts” in a long term care policy that you can adjust in order to create the most appropriate policy. However, for this article, we’ll focus on one important rider called inflation protection. This is an optional rider, but honestly, it is will do wonders for your coverage in the future.

Inflation protection is actually a very important feature of a long-term care policy because it allows for your benefits to grow through the years and makes the value of your LTC plan keep up with the continuous increasing costs of LTC services. Meaning, even if prices of care services go up, you are sure your funds are able to catch up.

There are several kinds of inflation protection offered as riders on different long term care insurance policies, but the two most popular kinds are simple Inflation and compound inflation.

What are the Two Types of Inflation Protection?

Simple Inflation Protection

According to completelongtermcare.com, this allows for a policy’s benefits to increase at a fixed percentage (5%) of the original daily benefit. It is usually best for people in their 60s.

Compound Inflation Protection

This type of inflation protection allows the benefits to increase at a faster rate since each year’s increase compounds upon the previous year’s increase, not on the original daily benefit amount. This would be a very good option for anyone under 60 years old, and whose claim can be projected at least 20-30 years away.

A low insurance quote may be due to the absence of inflation protection or the presence of a specific type. A policy with 5% simple inflation protection will cost less than one that has a 5% compound inflation rider.

To know more about how you can make inflation protection work for you and give you more earnings and benefits from your long term care insurance policy, consult with an experienced long term care adviser.

Find more important details about ltc insurance inflation protection at
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