An inflation rider is an optional add-on that escalates policy benefits at a defined rate-commonly 3% or 5% compound in long-term care-or according to an index such as CPI. The rider addresses the erosion of purchasing power, especially for plans intended to pay future care costs or sustained income. Riders increase initial cost but can materially improve real-value outcomes in long retirements or prolonged care events. Contract specifics govern compounding method, limits, and interaction with other benefits.

Planners add 3%-5% compound LTC riders for clients retiring decades from now. They explain the premium trade-off and how inflation affects both benefit adequacy and duration at claim time.