When you start to consider how the numbers add up for a Life Care community, you’ve got two costs to consider, and even more financial gains.
Let’s start with the upfront buy-in fee, which is typically in the range of $150,000 to $300,000 — depending on such things as your floor plan, services, and the Life Care contract you choose. It’s the buy-in fee that makes the Life Care guarantee with Brookdale possible.*
The other cost is the monthly service fee, which averages $2,500 to $3,500, depending on the type of accommodations and level of care. While the monthly fee may vary slightly from year to year, your community may agree to cap increases. Brookdale voluntarily caps annual increases at the consumer price index plus two percent at most of its Life Care CCRCs.
But don’t let the sticker shock deter you; the reality is you also gain substantial health, financial and lifestyle benefits in choosing a Life Care community.
Most important in that list is the Life Care guarantee. This unique benefit guarantees that even if your financial resources are eventually exhausted due to no fault of your own you’ll still have the care you need.
You’ll also benefit from significant savings in healthcare costs because your buy-in fee invests in your future, allowing you to receive more care when you need it at a lower monthly cost.
But the benefits don’t end there. The IRS considers Life Care to be a pre-paid medical expense, so tax deductions are often available for portions of the buy-in fee and monthly service fee — typically up to 40 percent. You should consult with your tax advisor for more details.
A Life Care contract also takes care of the portion of your estate planning that would address funding your healthcare needs. Plus, you may choose a refundable contract that returns a portion (up to 90 percent) of your buy-in fee to your designated beneficiary after you pass away.
You can count on us to deliver on our commitments to our Life Care residents as we continue to build upon our over 30-year heritage of fulfilling our obligations.
Additional health benefits include the assurance that, with multiple levels of care in one location, in most cases, you won’t have to change communities even if your health needs change over time.
And let’s not forget the day-to-day benefits of living in a Life Care community. With amenities such as a swimming pool, fitness center, beauty salon and exciting life-long learning programs and social events, many of our Life Care residents compare their communities to a cruise ship without water — it’s really that much fun!
Choosing a Life Care community paves the way to the good life, to the retirement you always imagined today, plus stability for changing needs tomorrow.
*The Life Care guarantee is subject to the terms and conditions of the Residency Contract.
Check out these three additional topics to a gain deeper financial understanding about Life Care.
Every great investment often starts with a down payment. Whether it’s to purchase your favorite home or to fund a retirement account, sometimes it pays to put money down.
Think of your Life Care* entrance fee as just that — a down payment on your future.
Your entrance fee allows you access to the priceless benefit of receiving care throughout the length of your lifetime, along with potentially saving thousands of dollars in the future by securing a lower monthly rate.
But how do you pay for it? The truth is you don’t need to be made of money to cover the cost, which is typically in the range of $150,000 to $300,000. You have many resources right at your fingertips.
Home Sale — For years you’ve been building equity in your home. Cashing that out could be a great way to cover the entry fee. This is a very popular option, as many of our residents are already planning on selling their home before they move to a Life Care community.
You’ll essentially be transferring funds from one great investment to another. You enjoyed many perks of homeownership, but just think of what you’ll enjoy at a Life Care community: a beautiful apartment without any maintenance or worries, wonderful food available to you every day, a gorgeous campus and plenty of other amenities right outside your door.
Personal Investments — Whether it’s funds from stock holdings, a 401(K) plan or Individual Retirement Account (IRA), these assets can propel you toward move-in day at a Life Care community. You worked hard to build up your savings and investments for just this moment. This is what you’ve been working your whole life for.
If you’ve steadily been saving up for your retirement, then your hard work is about to pay off, because a little planning goes a long way in regards to the monthly Life Care* fee.
On average, Life Care residents can expect to pay between $2,500 to $3,500 per month, although the amount can vary among communities. This amount might not be much different, if at all, from what your current monthly spending is.
Consider some or all of your current expenses:
Don’t forget all those other expenses that you don’t deal with often, like property taxes, homeowner’s insurance and maintenance on your home. These can quickly add up to at least $2,500 — and probably much, much more!
At a Life Care community, all of those expenses fall under your monthly service fee. The money you’re currently paying for those expenses will go directly to your monthly Life Care budget. Plus, your monthly Life Care fee also includes additional perks that might not already be enjoying, such as an expansive on-site pool, laundry and housekeeping services.
If you need extra funds to cover the rest of your fee, the sale of a home can often pay for both the entrance fee and future monthly fees. You can also use any pension or retirement payments you’ll be receiving, either through government or private programs.
What Can Influence Your Monthly Cost
As you consider your budget, keep in mind that you do have some flexibility and control over your Life Care monthly fee. Certain selections or choices can increase or decrease that final total, which can help you stay within a certain budget.
The type of Life Care community you choose for instance can have a significant impact on your bottom line, as well as the kind of living accommodations you select. (You’ll pay more for a 1,600-square-foot, villa-style abode with a private garage and massive master suite than a more modest one-bedroom floor plan with 1,000-square feet.)
Life Care contracts are another influencer on your costs per month. Certain Life Care contracts have a set monthly rate for your lifetime, so you won’t need to budget for monthly increases if you switch levels of care or need more care services. Other contracts use a pay-as-you-go method. If you choose these, your monthly fee will change over time to reflect any changes in care and can affect your budget in the long term. Learn more about Life Care Contracts and the financial implications.
At Life Care communities we give you choices, which is perfect for your lifestyle and your wallet.
If you want to hone in on specific costs, and talk through options at specific communities, contact us today. We’d love to help.
A common misconception about Life Care is that there’s no refund policy for entrance fees. People are often afraid they’ll have to pay a large sum of money without the comfort of a money-back guarantee.
In most cases, a considerable portion of the entry fee is refundable. If your stay with us ends up shorter than expected, then you or your estate can often get a percentage of that refund amount back to use.
The refund policy details are settled before you ever move into a community and are outlined in your Life Care contract. Policies differ among Life Care communities, but typically there are a variety of options available.
Your refund amount might be a set percentage of the total entrance fee. It could be based on a monthly reduction that’s determined by the length of your stay. Or it could be a combination of the two. This flexibility means that you can find the one that best fits your needs. A representative from your Life Care community can help explain your specific options in more detail.
Don’t let stress or worry hinder your decision about Life Care. You deserve to feel confident about your financial investment, and a refund guarantee can help do that.