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Buying long term care insurance entails an inflation rider to ensure you are protected from the annual increase of long term care cost. Reports of leading LTC insurance providers show rates of long term care facilities have increased from 2.5% to 7% in the past five years. According to their forecast, this can quadruple in 2026 and, thus, the need to purchase a long term care insurance inflation protection is so important. Sometimes having an LTCI is not enough to say that we have secured our health care needs for tomorrow. It pays to keep abreast of the latest happenings in the industry so we’d know if what we got for ourselves will still be adequate 20 years down the road. Purchasing a long term care insurance inflation protection will ensure us of quality LTC services no matter how high the cost of nursing homes, assisted living facilities or home care services would soar. If you’re one of those individuals considering this LTCI rider, you can choose between simple and compound. However, before putting money into anything assess your finances first so you don’t end up with lapses or failure to maintain the premium. Otherwise you could end up like the others who are currently facing problems with their claims. Simple inflation protection adjusts your daily or monthly benefits with an annual fixed rate. For instance, your policy shows that you have a maximum daily benefit of $200 before you purchased an inflation protection. That amount will increase the following year to $210 for a simple inflation rider of 5%, or maybe $206 if the inflation protection rider is 3%. Meanwhile you can also opt for the compound long term care insurance inflation protection, which will cost you more in premium than the simple inflation, but nonetheless more ideal. According to LTCI experts, the best people to purchase the compound inflation protection are the young ones because they have more time to complete their premiums and so they can definitely afford this inflation rider. With the compound inflation protection, the total amount of your maximum benefits will speedily increase via a rate compounded every year. In 15 years your maximum daily benefit will be relatively bigger than that of another policyholder who’s been paying for her policy for 20 years now but only managed to clinch a simple inflation protection. Individuals beyond 70 years are not encouraged to go for the compound inflation, as this will pose danger to their finances. They’re better off with the simple long term care insurance inflation protection because unlike the younger generation, they’re more likely to qualify for long term care soon. Purchasing an inflation protection for your policy is definitely the best way to brave the cost of long term care that is increasing ceaselessly. There might not be a way to stop it but there is absolutely many ways to prevent it from causing you harm. If you’re still not sure about which inflation protection to buy, you can research on the current rates of long term care facilities in your area. ----------- Get accurate estimate of your Long Term Care insurance premiums and understand the benefits of CLASS Act by visiting Complete Long Term Care website.
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