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June 27, 2008, Newsletter Issue #134: Opting for Inflation Protections

1

Tip of the Week

Inflation protection is usually an add-on, offered by long term care insurance policy providers that is tied to the initial daily benefit you choose. If you buy a long term care policy when you are 55 years old, it is very likely that the cost for long term care will escalate before you tap your benefits, and you run the risk that your fixed daily benefit will not cover your actual costs.

Inflation protection automatically increases your daily benefit on an annual basis to keep pace with inflation. While inflation protection is not required, it is recommended if you are buying your policy while you are still relatively young.



2

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