When you’re thinking about moving to a Life Plan, or Continuing Care Retirement Community (CCRC), it’s important to understand the different types of contracts available. These contracts determine your experience in the community, defining your care and living arrangements, so being informed is crucial for making the best decision for your future.
To help guide you, here’s an overview of the most common types of retirement community contracts and their benefits:
Contract Types for Life Plan and CCRC Communities
There are several types of contracts that community residents can choose from to customize their retirement community experience. After we discuss these contract types, we will then examine the benefits for retirees.
We will cover the following contract types below:
- Type A: Life Care
- Tybe B: Modified
- Type C: Fee for Service
- Rental Contracts
Type A Contract: Life Care
The Life Care Contract is the most all-encompassing option available. It covers every level of care—independent living, assisted living, memory care, and skilled nursing—without extra charges as your care needs increase.
With this contract, you pay a one-time entrance fee upfront, along with a monthly service fee. In exchange, you have access to a wide range of healthcare services for as long as you remain in the community.
This option is designed to give you peace of mind, ensuring that your care needs will be met regardless of how they change over time.
Type B Contract: Modified
Type B contracts, or Modified Contracts, offer a middle ground between Life Care Contracts and Rental Contracts. These contracts usually provide a specified number of days of assisted living or skilled nursing care at no additional charge.
Once you exceed the included days, you will need to pay extra for further care. This option often requires a lower entrance fee compared to a Life Care Contract but does not provide the same level of comprehensive care.
It’s a good choice if you want to balance upfront costs with potential future needs.
Type C Contract: Fee-For-Service
Type C Contracts, or Fee-for-Service Contracts, require you to pay an entrance fee and monthly rent for independent living. When you need assisted living or skilled nursing care, you pay for these services on a per-service basis.
This contract often comes with a lower entrance fee and monthly fee compared to the other types but can lead to higher costs if you need extensive care in the future.
Rental Contract
Rental contracts are the most flexible and have the lowest initial cost. With this option, you pay a monthly rent without an entrance fee. You can typically access the community’s amenities and services, but any additional care required is paid for separately as needed.
While rental contracts offer flexibility, they do not include long-term care costs, which can become a significant expense if your healthcare needs change.
Benefits of Choosing a Life Care Contract
All the contracts mentioned offer valuable options, but a Life Care Contract stands out with its many additional benefits, making it a particularly appealing choice for those planning ahead.
Here’s a detailed look at its key advantages:
Potential Savings
One of the most significant benefits of a Life Care Contract is the potential for savings. While the initial entrance fee can be substantial, over time, this type of contract can be more economical than paying out-of-pocket for assisted living, memory care, or skilled nursing facilities.
The comprehensive coverage means that you are protected from escalating care costs, which can provide significant financial relief as your care needs increase.
Peace of Mind
Life Care Contracts offer peace of mind by providing a clear plan for your future healthcare needs. Knowing that all levels of care are covered allows you to focus on enjoying your retirement without worrying about unexpected health issues or financial strains.
This prearranged plan ensures that you have control over your future, both in terms of care and finances.
More Freedom, Social Opportunities, and Better Access to Healthcare
Moving to a CCRC, especially with a Life Care Contract, provides you with enhanced freedom and numerous social opportunities. These communities often offer a variety of activities, social events, and amenities that you might not have access to otherwise.
Additionally, having on-site healthcare services means you receive timely and convenient medical care, contributing to overall well-being and quality of life.
Explore Retirement Living is Here to Help
Choosing the right contract for your retirement community can have a significant impact on your future quality of life and financial stability. By understanding the options available and evaluating your needs and preferences, you can make a well-informed decision that ensures a comfortable and secure retirement.
Explore Retirement Living is happy to offer information to retirees like you and help you find your perfect fit. If you are looking for a Life Plan or CCRC Retirement Community in Lancaster County, Pennsylvania, be sure to check out our Annual Open House.