A large long term carrier is rolling out a graded automatic inflation protection rider as an alternative to traditional automatic compound inflation riders.
Called Tiered Solution, the rider is a product of MetLife, a subsidiary of MetLife, Inc., New York (NYSE:MET). It is designed to help address policyholder concerns over the likely rising cost of care, according to Jodi Anatole, vice president-LTC product management.
For example, when purchased before age 61, the rider automatically provides a 5% increase in the total benefit and the monthly benefit amount, says the insurer. Then, beginning at age 61, the total benefit and the monthly benefit amount increases by 3%. These increases are compounded annually up to age 76 with no rise in premium as a result of the benefit increases provided by the rider, the company says.
This graduated approach provides a lower cost alternative to traditional automatic compound inflation riders, the company says.
The rider is currently available in 31 states with the MetLife LTC LifeStage Advantage LTC policy.