It may not feel like it at times, but not everything goes up in price. Electronics and life insurance are two good examples. Long term care such as nursing home and home health care, however, is increasing at an alarming rate and is almost guaranteed to do so in the future as far as anyone can see.
With the aging population and people living longer, the demand for long term care facilities and the professionals that supply the care are going to be in high demand with short supply. Long term care, whether in an assisted living facility, nursing home, home health, or hospice care, can cost in excess of $50,000 per year in Virginia. Even modest increases over a number of years until the coverage is needed would make the cost of care staggering.
A long term care policy purchased to cover today’s cost of care will be inadequate for the future. This problem can be solved by adding a rider to the policy which provides inflation protection. The rider increases policy benefits each year to keep up with the ever-increasing cost of care. The younger you are, the more important it is to have such a protection since it may be many years down the road until the coverage is used.