The Federal Long term Care Insurance Program lets you choose between two inflation protection options.
Automatic Compound Inflation Option—With this option, your daily benefit amount and the remaining portion of your maximum lifetime benefit will automatically increase by 4 or 5 percent every year (your choice) with no increase in your premium. The benefit increases continue even if you are eligible for benefits.
Future Purchase Option—This allows you to buy additional coverage every two years at an extra cost. The increase offered in your daily benefit amount and the remaining portion of your maximum lifetime benefit is based on increases in the Medical Consumer Price Index. Each time you buy additional coverage, your premium will increase. The premium for the additional coverage will be based on your age and premium rate at the time the increase takes effect. Every two years you will receive your Future Purchase Option notification provided you are not eligible for benefits and have not declined three Future Purchase notifications in the past.
You may switch to the Automatic Compound Inflation Option without proof of good health when you receive your Future Purchase notification as long as you are not at the time eligible for benefits and have not declined three Future Purchase notifications in the past.
Read more about FLTCIP – Federal Long Term Care Insurance Program at ask.FEDweek.com