Did you know that the inflation protection rider is the most expensive option on most long-term care insurance policies?  Indeed.  We've explained inflation protection before, but thought it may be time for a refresher course.

Who need inflation protection on their long-term care insurance policy?

Short answer: Practically everyone.  There's a point where 5% Simple (the cheaper and less effective) inflation protection is okay - probably somewhere around the age of 70, though personal risk tolerance will dictate exactly where this point is.

For everyone under the age of 70 or so, 5% compound inflation protection with NO MAX is the best idea to play it safe.  Remember, in 20 years, what $200 a day buys today will only buy less than hlaf that amount of care! (numbers courtesy of this site - "Wanna Get Depressed?")

With 5% compound inflation, a 40-year old who buys $150 in coverage today will be getting over $1,050 per day if they need long-term care at age 80.  Perhaps this helps explain why LTC insurance is so expensive.  Given that, be sure to check out our money-saving tips page.