Long Term Care - Inflation Protection

Long term care insurance is less expensive if it is purchased many years before it is expected to be used. Long term care insurance coverage can be purchased much less expensively if the long term care insurance policy is bought while the insured younger and is not to be reasonably expected to need long term care. Younger applicants who are healthy should expect to be accepted easily by long term care insurance companies.

An individual should purchase a policy twenty to twenty five years before they expect to use their benefits. Purchasing the long term policy as a "youngster" is wise and the long term care insurance company will provide the client the option to that will enable benefits to increase over the life of the policy. The reasoning is long term care costs are expected to rise in the future.

Benefit Increase Riders can be the difference between a policy that provides expected benefits when and if care is needed, and a long term care insurance policy that is "not what you expected.". The long term care insurance policy should have a benefit increase rider to your policy as an optional benefit. There are long term care insurance companies that allow policyholders the option of a benefit increase as many times as they like on an annual basis. Benefit Increase Riders offer to raise benefits on an annual basis, using one of the following methods:

Simple Interest Benefit Increase rider
In this scenario, benefits can increase by a preset percentage on an annual basis. 1%, 2%, 3%, 4% and 5% and 6% increases are common. The daily benefit percentage increase is always based on the original benefit.

Compound Interest Benefit Increase rider
Compound interest benefit increase rider causes benefits to increase by a preset percentage on an annual basis. A 5% compound increase is common. The percentage increase in this case is always based on the current daily benefit. A much more rapid increase of the daily benefit amount will acrue in later years.