If I gave you $50 to pay for dinner out, you could probably stay within that budget. But if I gave you $50 to save to pay for dinner in 20 years, you might not be too happy. What will dinner out cost in 20 years? Will your $50 even cover entrees at that time?

And so it goes with long-term care (LTC) insurance. When you shop for an LTC policy, you choose a "daily maximum benefit" that is intended to cover an assisted-living facility or a nursing home. But what will a nursing home cost per day in 20 years? If you buy a $150 daily benefit today, how much nursing home care will that pay for in 20 years?

These unknowns are why purchasing an inflation rider is crucial to any LTC policy. Inflation riders help you keep pace with the rising costs of care, so your LTC policy is valuable when you need it. For example, you can purchase an "compound inflation" that adds an additional five percent to your benefits every year.

For more, read about selecting an inflation rider for long-term care insurance.