Inflation Protection Rider

The inflation rider protects the insureds daily benefit against rising costs in the long term care market.  There are three options:

Simple Inflation Rider:  This rider will raise the benefit 5% each year and is calculated on the original daily benefit amount each year.  This percentage does not compound.  If the original benefit was $150 per month, the second year, it would be $157.50.  The year after that, it would be $165.00.

Compound Inflation Rider:  This rider will raise the benefit 5% each year and is calculated on the previous year's daily benefit amount, each and every year.  If the original benefit was $150 per month, the second year, it would be $157.50.  The year after that, it would be $165.37

No Inflation Rider:  With this option, the insured's benefit stays the same while industry costs continue to rise.  This could leave the insured with out of pocket costs if the time comes to use the benefits.

Health care costs are rising at an alarming rate, so it is extremely important that inflation protection be built in to the policy.

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