Inflation Protection
What Does Inflation Protection Mean?
Inflation protection is a special benefit feature added to an insurance policy that ensures the value of the benefits increases by a predetermined percentage at specific intervals in the future. The purpose of this feature is to protect the value of the benefits from being eroded by the effects of inflation over time.
Insuranceopedia Explains Inflation Protection
This feature is commonly found in life insurance policies or policies related to long-term care. In long-term care contracts, it helps mitigate the negative impact of inflation on the medical benefits provided by the policy. Inflation protection is an additional benefit to the main policy and may require the payment of an extra premium. An example of a long-term care policy with inflation protection is one that automatically increases benefits by a percentage every year.
