Key takeaways
- Retirement planner Dana Anspach told Morningstar that her firm typically builds 3% annual inflation into ordinary living expenses and 5% into healthcare-related costs.
- Simple inflation keeps adding the same $6 to her daily benefit every year, while compound inflation lets each increase build on the last one.
A $300 annual discount on a long-term care policy sounds like smart shopping, but 25 years later that choice forces a painful reckoning between what the policy pays and what the nursing home actually charges.
