Long-Term Care✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A common inflation protection option on long-term care policies increases the daily benefit by which amount?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Industry-standard inflation protection increases the LTC daily benefit by roughly 3% to 5% compounded annually so the benefit keeps pace with the rising cost of care over a long claim period. Without it, a benefit fixed at today's prices loses substantial purchasing power over ten or twenty years. This figure is cross-checked against the PassSprint fact table (3%-5% compound is the standard industry option).
Why the other options are wrong
- A) 10%-15% annual compounding is unrealistically high and would price the rider far beyond market norms.
- B) A flat $100 increase ignores the compounding nature of care-cost inflation and is not the standard design.
- C) 1% monthly simple interest is a fabricated figure; the standard is 3%-5% compounded annually.
Memory hook
Inflation rider = 3-5% compound growth on the daily benefit, year after year.