With Automatic Inflation, the daily benefit amount inflates by 5%, compounded each year.
The daily benefit amount continues to inflate even when the member is in claim.
See below for an example. You may also view the record for Carlton Jacobs in InsPro as an example.
Year Number |
Calculation |
Daily Benefit Amount |
1 |
No inflation in year one. |
$100 |
2 |
$100 x 1.05 |
$105 |
3 |
$105 x 1.05 |
$110 |
4 |
$110 x 1.05 |
$115 |