Let’s get down to business. Signing on the dotted line doesn’t have to be an intimidating task. A Life Care contract is a powerful tool where you can see the benefits you’ll be getting.
But what can you expect from a Life Care contract?
One word: flexibility. Our contracts come with options, so you can find the right fit for your needs.
Depending on the community, there are three different contract options that you can choose from. The type you choose will determine the amount of money you’ll spend upfront, as well as how much your monthly costs will be.
Type A — The most full-service contract available, Type A usually allows you to lock-in your Independent Living monthly service rate for the length of your stay at the community. So even when you need to access more care, for example like making a move from Independent Living to Assisted Living, you won’t be hit with a huge increase in monthly costs. And you’ll have the guarantee of lifetime care*, even if your financial assets are exhausted through no fault of your own.
Often, this type of contract has the highest upfront fee, but that down payment locks in those discounted healthcare rates, which can provide you with substantial savings over your lifetime.
This type of contract is perfect if you want the least amount of long-term risk in your healthcare, and you don’t mind paying an upfront investment to ensure your healthcare needs will be fully covered for the remainder of your life.*
Type B — With this type of contract, you can still receive a discounted rate for your healthcare needs, but instead of it being unlimited, you’ll only have that discounted rate for a set amount of time. While this contract has limited healthcare benefits, you can still continue to receive the excellent, on-site healthcare services, you’ll just pay market value for the services. For example, if you need Skilled Nursing care after surgery, your contract may include a certain number of days available in the Skilled Nursing Center, free of charge, or you may get a reduced market rate for Skilled Nursing care for a set number of days.
A big upside to this contract is that it typically features a lower entry fee than the Type A contract. You also still get to enjoy a reduced rate for some time, which can add up to savings in the long run.
This type of contract is ideal for people who want to save on the upfront fee and don’t need the full coverage that the Type A contract provides.*
Type C — This contract has the lowest entrance fee, but unlike the other two contracts, you’ll pay full market rate for your healthcare costs throughout the length of your stay. You don’t have that locked-in, discounted monthly rate, and your costs will increase with each level of care. But it still allows you to enjoy all of the wonderful perks of a CCRC without a large barrier to entry. For example, if you’ve already invested in a generous long-term care insurance policy, you may already have the resources to cover any level of care you may need.
This option is right for those who don’t anticipate having high healthcare costs in the future, or for those who already have a plan to cover healthcare services down the road. On a Type C contract you get to enjoy the same living accommodations and amenities as you would with the first two contracts without a huge up-front investment.*
Now that you have a better idea of what to expect from Life Care contracts, learn more about what’s included in your monthly service rate.
Please Note: These descriptions are intended for general education purposes, and all contracting and pricing information is subject to the most current residency contracts and may change at any time without notice. Please contact a senior living advisor to get the most up-to-date information on the plan that interests you.
*The Life Care guarantee/plan is subject to the terms of the residency contract. Contact a community for details.