Provisions in a health insurance policy that increase benefit levels to account for anticipated increases in the cost of covered services.
An option offered on some long-term care policies which can increase the maximum daily and lifetime benefits to combat inflation. The protection is generally 5% per year, but varies from policy to policy as to whether the increase is calculated at simple or compound interest.
Automatically raises the insured's coverage limits each year to adjust for rising prices in health care and long-term care services (inflation). Some companies sell this as added coverage while others may include it in their policies.
provides for increases in benefits depending on increases in the cost of long-term care services.
A policy option at additional cost which increases daily benefits over time to account for inflation.
Increases the daily benefit amount on an annual basis. If elected, increases benefits in order to protect against the effects of inflation. Most common is the Compound 5% Inflation Rider which increases the daily benefit amount each year by 5% of the previous years daily benefit amount. The compound effect really begins to take off around the 15th year, so if you are younger when you buy, this seems to be the best choice. If you are well into retirement, it's a toss-up between paying for the extra protection or simply starting out with a higher daily benefit at the beginning. Under age 70, choose always compound. Over 70 consider a 5% simple option.
This feature increases the amount of your benefit by a fixed percentage automatically every year, to adjust for inflation.
At least every three years, you will be offered an opportunity to increase your benefits to keep up with inflation. Your daily maximum and monthly maximum applicable benefits would increase by at least 5%, compounded annually. Your age on the effective date of the increase will be sued to determine the additional separate premium for the increased coverage.
a feature or option of long-term care insurance coverage that increases the value of benefits over time to keep pace with increasing costs of care.
Option to increase original daily benefit by 5% per year credited on a simple or compound basis.
A policy feature that provides for increases in benefit levels over time to help pay for expected inflation in the costs of long-term care.
An option whereby your original daily benefit will increase 5% each year, credited on a simple or compounded basis. This is to keep up the future increasing costs of care.
an annual increase in the maximum daily benefit that acts to help the insured plan for an expected rise in the cost of care.
An insurance provision that allows the policyowner to increase benefits over time to offset higher service costs associated with inflation. Offered as an option in an LTC policy.
A rider offered in long-term Care policies which increases the daily benefit amount on an annual basis to guard against the rising cost of care. The most common type is the 5% Compound Inflation Rider which increases the daily benefit amount each year by 5% of the previous years daily benefit amount. This is the best protection of the common riders offered. Other common types of Inflation Protection include 5% Simple Inflation and well as CPI type of inflation options.
Often referred to as a cost of living adjustment (COLA) this rider automatically increases your protection each year to help keep up with inflation. Usually, there is a choice between simple or compound increases. The simple option increases your benefit amount by a set dollar figure each year. The compound rider increases by a set percentage each year. The compound COLA is quite a bit more expensive because it raises the benefit much more rapidly. Some type of COLA rider is very important.
An optional policy feature of some policies that increases benefit levels over time in anticipation of the inflation of the cost of long term care.
A policy option that provides for increases in benefit levels to help pay for expected increases in the costs of long-term care services.
Increases in benefits built into a policy to compensate for inflation.
One of several mechanisms that can be built into insurance policies to provide for some increase over time of the daily benefit to account for inflation. Addition of this feature to a policy can be important depending on your situation, but it also raises the price of the policy.