What inflation rider do I select on a long term care insurance policy?

The carriers have re-priced their products, and offer a variety of options.    

Many of our clients 60 years and under select 3% compound because this will be adequate to keep up with inflation of home care and assisted living based on recent years.  Their other resources can supplement nursing home costs.  Also, 3% is the "sweet-spot in pricing.  

For those 61 and older, consider your age, health and family longevity.  You may find that inflation increases for a 10, 15 or 20 year period may be adequate.  This will reduce the premium for long term care insurance, because the company will know what its ultimate maximum payout could be.  

What is the cost of care increase in the recent years?  Let's say it is 2% for home care, 3% for assisted living and 5% for nursing home for each of the last 5 years. What is the current monthly cost in the area you live and where you plan to retire?

An insurance broker who is independent (not only showing you one carrier) can assist you with this analysis.  Education is key in making any financial decision.  Long term care planning is just one of those important decisions.  Insurance funds a plan.