LTC Inflation Protection, Nonforfeiture and Contingent Benefit (F.S. 627.94072)

Inflation protection — must be OFFERED: benefit increases of at least 5% compounded annually, purchasable as an automatic annual increase rider or a periodically exercised guaranteed insurability option; insurers may instead cover a percentage of reasonable and customary charges with no stated maximum. Nonforfeiture — must be OFFERED: reduced paid-up, extended term, shortened benefit period, or other approved forms; the insurer may delay the benefit's effective date (the note omits the number of years; eligibility applies to lapses after the third policy year). The benefit must equal at least 100% of premiums paid, subject to a minimum of thirty (30) times the daily nursing home benefit — the rider pays return of premiums or 30x the daily benefit, whichever is greater — and accrued values must be disclosed at lapse. Contingent benefit on lapse: for insureds who REJECTED nonforfeiture (or in the first 3 years before it takes effect), triggered when cumulative premium increases reach the statutory percentage of the initial annual premium AND the policy lapses within 120 days of the increased premium's due date.

The carrier must offer you an inflation escalator and a walk-away benefit; refuse the walk-away and a safety net still catches you if a rate hike prices you out.