Simple inflation is a long-term care insurance inflation protection option in which the benefit amount increases by a fixed percentage of the original benefit each year, rather than compounding on the prior year's increased amount. For example, a 3 percent simple inflation rider on a $200-per-day benefit adds $6 per day each year, so benefits grow linearly over time. Simple inflation generally produces lower long-run benefit levels than compound inflation but costs less in premium. It can be attractive for older applicants with shorter time horizons to care risk or those balancing affordability with some protection against rising care costs.

Advisors compare simple inflation with compound inflation when designing LTC or hybrid life/LTC policies. Illustrations show projected daily or monthly benefits at different ages and how each inflation type tracks historical or assumed future care costs. For clients in their late 60s or 70s, a simple 3 percent inflation rider may offer a reasonable compromise between coverage growth and premium levels. Advisors emphasize that simple inflation increases are predictable but may lag behind high medical inflation, especially over long periods. Understanding simple inflation helps advisors tailor inflation protection to client age, budget, and risk tolerance instead of defaulting to the highest-and most expensive-compound option in every case.