We all know the value of protecting our future through insurance.  In particular, protecting our income through long-term disability (LTD) insurance and assuring that we’ll get the assistance we need through long term care (LTC) insurance.

The question that often arises goes something like this: “If I purchase my LTD and/or LTC insurance policies now for benefit amounts that make sense today, what happens down the road when those dollars I’ll receive are not worth as much as they are today?”

Fortunately, it is possible when purchasing either LTC or LTD insurance, to include an Inflation Rider.  With this protection in place, your benefit will be adjusted each year according to the change in the Consumer Price Index.

The better policies will increase each year using compound interest – not simple interest, and these better policies will not have a cap on how much the benefit can grow. 

You might not be familiar with the benefit of compound interest over simple interest; but the example below will show you the importance.

Here at Dennis D. Smith Life & Health Insurance, we are experienced with Long Term Care insurance and Disability insurance, and we would be glad to answer your questions and help you sort out the options available to you. 

Contact our office to discuss your insurance questions and needs.
Arrange for a no-obligation Policy Review.