Inflation protection is a policy feature or rider that increases benefits over time to preserve purchasing power. In long-term care insurance, it may take the form of automatic compound or simple percentage increases to the daily/monthly benefit. In income riders, inflation protection can be applied via increasing payout options. Protection trades higher premium or rider costs for benefits that better track rising care or living expenses, improving sustainability of the plan over long horizons.

Clients adding LTC coverage often select compound inflation to preserve purchasing power. Advisors model premiums versus projected care costs and consider hybrid policies when budget or underwriting favors that approach.