Whom does the industry think it is kidding? I know that good LTC group plans are possible, but you rarely see them issued. Most group LTC plans I see have been issued without the proper inflation protection.
How does this happen? The answer is simple. A company requests a group LTC insurance plan for its employees. The personnel department then contacts their insurance broker and asks them to lay out a plan. The plan usually has 3 options, none of which are realistic. The weakness in the usual group plan is that it offers the correct daily amount, but it has a guaranteed purchase option instead of real inflation protection.
Left to his or her own devices, the employee invariably picks the cheapest plan, which in the long run will not do him or her any good. Most agents can design a better plan for less cost on an individual basis. I recently saw one plan that expired upon termination of employment. Does that make sense?