When you buy a Long Term Care Insurance policy, you're buying a specific benefit amount of coverage. This is referred to commonly as your "pool of money" or benefit maximum. This is calculated using an easy formula:
Daily Benefit x 365 Days x Years Selected = Pool of Money
So, for example, if you had a $100/day policy that paid for 3 years, the math would look as follows:
$100 x 365 Days x 3 = $109,500 Pool of Money
Finally, if you buy Inflation Protection with your policy, the pool of money can grow by the corresponding amount. So, for example, if you have 5% Compound inflation protection, your policy will increase both in daily benefit and Pool of Money each year by that amount.