Choosing the right senior living community is a decision that can significantly impact your future well-being and financial security. For those considering a Continuing Care Retirement Community (CCRC), also known as a Life Plan Community, understanding the different CCRC contract types is essential for selecting a community that aligns with your individual needs, priorities, and long-term care plans.
One of the primary benefits of a CCRC is the ability to plan for future health care needs. These communities provide a full continuum of care, including independent living, assisted living, memory care, skilled nursing, and rehabilitation.
How your future care is covered—and what you’ll pay for it—depends largely on the type of contract you choose.
In this guide, we’ll explore the four main CCRC contract types: Life Care, Type B (Modified Life Care), Type C (Fee-for-Service), and senior rentals. By understanding the details and differences of all CCRC contract types, you can make a well-informed decision that meets your long-term care needs while maintaining financial peace of mind.
What Is Life Care, and How Does It Apply to CCRC Contract Types?
Life Care contracts (Type A) are considered the gold standard for Continuing Care Retirement Communities (CCRCs), offering a comprehensive approach to senior living that emphasizes long-term security and well-being. This contract type allows residents to enjoy life to the fullest without worrying about future health care costs or the availability of services.
With a one-time entrance fee and predictable monthly service fees, Type A Life Care contracts provide access to a full spectrum of care, ensuring residents’ needs are met at every stage of retirement, including:
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Independent Living: Enjoy a vibrant and active lifestyle with resort-style amenities, social events, and opportunities for personal growth.
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Assisted Living: Receive personalized support with activities of daily living (ADLs) while maintaining independence and dignity.
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Skilled Nursing: Benefit from 24/7 professional care in a comfortable and compassionate environment.
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Rehabilitation: Recover from illness, injury or surgery with specialized care designed specifically for older adults.
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Memory Care: Access specialized care and programming for those with Alzheimer’s or other forms of dementia.
In summary, Type A Life Care contracts provide a comprehensive, all-inclusive approach to senior living, covering nearly all care needs for the duration of residency, giving residents peace of mind about their futures.
Type B (Modified Life Care)
Type B (Modified Life Care) contracts provide an enticing balance between affordability and access to care services, often featuring lower initial entrance fees compared to Life Care. This affordability and flexibility come with the potential for increased costs should your health care needs evolve beyond the scope of the contract’s coverage.
While Type B contracts offer a degree of coverage for long-term care, the extent and duration of this provision may vary. Depending on the specific terms of the contract, residents may be entitled to a predetermined number of days in assisted living or skilled nursing communities at discounted rates.
If your care needs evolve beyond the initial coverage, a range of customizable care options is available to provide the support you deserve. At WhiteStone, our dedicated team is committed to helping you explore your options, ensuring you receive the right level of care while maintaining financial peace of mind.
Type C (Fee-for-Service)
Type C (Fee-for-Service) is one of the CCRC contract types that typically has the lowest up-front costs and lets residents choose services as they need them. However, this flexibility comes with the possibility of much higher expenses down the line.
This contract option does not typically include long-term care coverage. Residents with these senior living contracts pay for health care services as needed at full market rates. While this approach offers flexibility, it’s important to factor in the potential financial impact of future care needs when considering a Type C contract.
Senior Rental Contracts
Rental contracts typically involve paying a monthly fee for housing, services, and amenities, with no up-front entrance fee.
These contracts generally do not provide long-term care coverage as part of the monthly fee. However, some senior living communities that offer rental contracts may have assisted living or skilled nursing communities on-site or may partner with nearby providers. In those cases, residents can access those services, but they would pay for them separately, usually at market rates.
Navigating the Path to Your Ideal Contract
One of the major advantages of CCRCs is the ability to plan for evolving health care needs. Each CCRC contract type—from Life Care to Type B, Type C, and senior rentals—addresses these needs differently:
Life Care
- Ideal for: Seniors who prioritize comprehensive long-term care coverage and financial predictability. This includes those who:
- Anticipate needing significant health care services in the future
- Value peace of mind and want to ensure their health care needs will be met, regardless of future health changes
Type B (Modified)
- Ideal for: Seniors who seek a balance between affordability and some long-term care coverage. This includes those who:
- Are currently in good health but want some protection against future health care expenses
- Have the financial means to cover potential out-of-pocket costs if their care needs exceed the contract’s limits
Type C (Fee-for-Service)
- Ideal for: Seniors who prioritize financial flexibility and control over their health care choices. This includes those who:
- Have substantial financial resources and/or comprehensive health insurance to cover potential health care costs
- Prefer to pay for services only as they use them
Senior Rental Contracts
- Ideal for: Seniors who:
- Prioritize flexibility and do not want to commit to a long-term contract
- Have excellent health insurance and are confident they can cover any health care expenses that may arise
Making an Informed Decision About CCRC Contract Types
Seeking professional advice from a financial advisor or elder law attorney specializing in senior living can provide valuable insights. They can help you evaluate your financial situation, analyze the different types of CCRC contracts, and make an informed decision that aligns with your overall financial plan and goals.
As you compare options, it’s also wise to ask, “How much does a CCRC cost, and can I afford a CCRC?” Costs for CCRC contract types can vary significantly depending on, services included, and the community itself.
Your personal preferences regarding lifestyle, amenities, and the overall community atmosphere are equally important factors. Consider what aspects of a senior living community are most meaningful to you, and choose a CCRC that aligns with your values and vision for retirement.
Your Future, Your Choice: Discover the WhiteStone Difference
As you embark on this exciting chapter of your life, choosing the right CCRC contract is a pivotal decision that can shape your future. At WhiteStone, we believe wellness is at the heart of every choice—supporting not only your health care needs, but also your social, emotional, and lifestyle goals.
We encourage you to contact us online to schedule a visit to WhiteStone and explore our community, meet our residents, and discuss your individual needs with our knowledgeable Residency Counselors. We can provide personalized guidance and help you understand the various contract options available.