Today (12/2016) what is the best inflation rate to purchase? Obviously the more the better but what would be a good rate for the average person? 3 or 4? Is 3 even worth it? I have a Mutual of Omaha plan offered at $3900 for 3% and $4500 for 4%. Is that $600 difference worth it? Kim

Hi Kim – I’m so glad you contacted me because this is the most important decision you will make about your LTC insurance plan. Just so happened, my latest blog explains my formula of figuring out how much coverage you need in 20 or 30 years depending on your age, then figuring out how to get there. You can use 3% but you will need to bump up the monthly benefit to make it work.  3% doubles in 24 years and 4% doubles in 18 years. This article will explain it all, and it even contains the compound calculator I use to determine the benefit I need to accomplish the target. Feel free to share this with your agent:

http://www.gotltci.com/2016/10/what-does-long-term-care-cost/

Posted in: Consumer