For example, if you were to choose the 5% Simple Inflation Benefit, and a Starting Daily Benefit of $200, your Daily Benefit would grow by $10 each year. The Daily Benefit would be $300 by the end of your policy’s 10th year.
The “Policy Limit” would increase as well. Assuming that you had not made any claims, by the end of the 10th year, the “Policy Limit” would have grown from $438,00 to $657,000. That is calculated as follows:
$300 per day x 365 days per year x 6 years = $657,000
This is another reason why it’s very important to choose a good Inflation Benefit for your long-term care policy.
Unfortunately, all too often, people will skimp on the Inflation Benefit, just to get a low premium. There are better ways to save on your long-term care insurance. Skimping on the Inflation Benefit is probably not the best way.
Click HERE to learn more about the single biggest mistake made when choosing the Inflation Benefit.