Source of Photo: USInflationcalculator.com
Long-term care insurance is bought when someone is "young" (50's) and healthy and is typically used when "old" (80's and 90's). Since an initial benefit is chosen to cover the current costs of long-term care, policy riders that increase coverage over time have always been a LTC option.
Deciding which inflation rider to add to a long-term care insurance policy is an inexact science. If you overestimate the inflation rate you'll end up with too much benefit - and you can't do much with excess LTC coverage. On the other hand, not having enough coverage to pay for meaningful benefits because inflation wasn't accounted at the time someone bought a policy is also a problem.
We recently analyzed over 25,000 LTC insurance policies that our business participated in since 2011 to get a idea of trends in inflation coverage. We included individual, group, and linked life/ltc plans from a variety of carriers including John Hancock, Genworth, Transamerica, Mutual of Omaha, and others.