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What is a long term care inflation rider?

I am looking online to find out if purchasing long term care insurance would be a good investment at my age (I’m 52) and I keep coming across the term “inflation rider” but I’m not finding a clear understandable definition.
Status: Open    Apr 12, 2016 - 10:54 AM


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Apr 12, 2016 - 02:14 PM

There are 2 types of Inflation Riders; Simple or Compound. An Inflation Rider is the percentage your benefits goes up annually, usually 3% or 5%, for example:

• A Simple Inflation Rider at 5% will increases 5% at policy’s 1st anniversary date and will increase every year 5% based on the starting policy amount.

• A Compound Inflation Rider at 5% will increase every year on the Anniversary date 5%, based on the previous years’ coverage amount.


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