A long-term care (LTC) insurance policy rider that increases the benefits
provided by a fixed amount per year. An example of how the simple inflation
rider works is: if the policy maximum daily benefit was $100 and the insured
had a 5 percent simple inflation rider, the maximum daily benefit would
increase by $5.00 per year. Therefore, in year 2, it would be $105, in year 3
$110, in year 4 $115, etc. The difference between a compound and simple
inflation rider is not significant in earlier years but becomes greater as time
goes on.