What Is a Lifecare Contract?October 20, 2021
You may not have a crystal ball, but with smart planning you can take control of your future no matter what uncertainties your retirement years may bring. Making your home in a Life Plan Community—also known as a continuing care retirement community or CCRC—is a step toward ensuring access to additional levels of care as your health changes over time.
You can take that sense of security one step further with a Lifecare contract. While living in a Life Plan Community protects your future by providing access to the care you need, a Lifecare contract is a tool to protect your financial future.
What Is a Life Plan Community?
A Life Plan Community (or CCRC) offers various living and healthcare options so residents can transition seamlessly from one level of care to the next if and when their needs change. This type of community is a popular choice for active seniors, because it blends attractive lifestyle benefits like high-end amenities and social events along with practical resources like on-site healthcare services.
If your ideal retirement involves more freedom with less home maintenance, moving into a spacious independent living apartment or cottage in a Life Plan Community could be a great way to begin living your retirement dream right away. You’ll gain access to helpful services like home maintenance and immediately start taking advantage of luxury amenities throughout the community, and you’ll have a plan in place for the future.
Down the road, if your health needs change, you’ll have access to a full continuum of care (assisted living, memory care, skilled nursing, rehabilitation, and home care), all within the familiar surroundings of the community you already call home. That means if you get sick or hurt, you can focus on your health and healing at home, rather than finding and settling into a new place to live during your recovery.
There are several different types of CCRC contracts; at Stonebridge at Montgomery, we offer two senior living contract options that allow our residents to meet their unique financial goals. Both provide guaranteed access to our healthcare services.
Our Type A Lifecare contract requires a one-time entrance fee, a portion of which is refundable. Choose this contract, and you can count on having access to high-quality on-site care at predictable rates for the rest of your life, with little to no increase in monthly fees over what you paid in your independent living residence. You’ll pay far less for these services than you would on the open market. You know where you’ll get this care, who will provide it, and how much it will cost.
With a Type B contract, also known as a modified plan or a traditional plan, you pay a lower entrance fee, which leaves you with greater liquidity to manage your financial goals. If you move in as an independent resident but later need health care, you’ll receive that care at an ongoing minimally discounted rate.
With either plan, you pay an ongoing monthly service fee. This covers access to all community amenities, as well as services and amenities such as utilities, interior and exterior maintenance, 24-hour onsite security, a meal plan, housekeeping, and scheduled transportation services. Many residents appreciate how easy financial planning can be with a single predictable payment each month.
Should I Consider a Lifecare contract?
The rising cost of healthcare services is a prevalent concern for residents in New Jersey. A recent poll showed 71% of residents worry about getting sick or injured and not being able to afford their care. What’s more, two out of three residents worry they may need to delay getting care as a result of rising costs.
With healthcare costs continually rising, it’s important to understand that while the contract options described above both guarantee access to healthcare services as your needs change, they don’t stipulate the price you’ll pay for that care. There are many considerations when deciding what type of contract suits you best, but a Lifecare contract is the best way to safeguard your assets against rising costs.
Let Us Help You Evaluate the Options
If you still have questions about Life Plan Communities and whether a Lifecare contract is right for you, our expert team is ready to help. We’ll help you compare your current living arrangement to the cost of living at Stonebridge, where you can enjoy the pleasure and comfort of our vibrant community. Contact us to arrange for a personal consultation and explore our inviting senior living community in Skillman.