Many people who are worried about facing a long term disability protect themselves against this with long term care insurance coverage. When buying this type of policy it is important to know what you are getting in terms of coverage, as well as how much you will be asked to pay every month.
A growing number of consumers are purchasing inflation protection for long term care insurance. Inflation is a major concern in today’s age, especially for those who are buying a policy now but may not need to make a claim for many years.
Generally speaking, those buying long term care insurance are in their 50s or 60s. Since it is likely that you will not need help or assistance with daily living tasks until your 80s, the issue of inflation is one to consider. In short, the cost of care could rise during the time period when you are paying for coverage but not actually needing to make a claim.
The long term care insurance policy that you are buying today may seem like a good deal, but after inflation takes its toll this may not be the case in the future. While some have the resources to make up the difference, others will be hit hard by inflation.
There may not be any way to determine what will happen to long term care costs down the line, but buyers today can protect against this with inflation protection. This will allow them to more easily deal with a long term disability in the future.
Source: Forbes, “Should You Buy Inflation Protection For Long-Term Care Insurance?” Howard Gleckman, Apr. 16, 2014