How does an inflation protection rider work on a long-term care policy, and is it worth the cost?

Long-term care costs rise faster than general inflation, so a policy bought today may cover only a fraction of tomorrow's bills without inflation protection. An inflation rider increases your daily or monthly benefit over time, commonly 3% compound annually. Compound inflation protection is far more valuable than simple, especially if you buy young, because the benefit grows on the growing base.

It substantially raises the premium, but skipping it can leave a policy nearly useless decades later when you actually claim. If the full rider is unaffordable, options include a lower compound rate, a larger initial benefit, or buying at an older age. For most buyers in their 50s, some compound inflation protection is essential to keep the coverage meaningful.