Inflation protection in long-term care policy is designed to

• A. Decrease the daily benefit over time
• B. Lock in the daily benefit
• C. Increase the daily benefit over time to keep pace with inflation
• D. Increase premiums without changing benefits

Answer: (C)

Inflation protection in long-term care insurance is about preserving the benefit’s purchasing power as care costs rise over time. By increasing the daily benefit over time, the policy stays aligned with inflation so the amount paid can still cover a similar level of care in the future. A fixed daily benefit would lose value as costs climb, and locking in the benefit would ignore inflation. Raising premiums without changing benefits doesn’t directly protect the benefit’s value. So the design is to increase the daily benefit over time to keep pace with inflation.