← Back to Blog

Senior Living 101: LifeCare Contracts Explained

senior woman sitting on a couch smiling and looking at her tablet

A growing number of older adults are choosing to live in Life Plan Communities, sometimes called Continuing Care Retirement Communities or CCRCs.

A Life Plan Community like Lake Forest Place offers residency and care under both Type A and Type B contracts, beginning in independent living and providing lifetime access to on-site assisted living, memory care and skilled nursing services. The rates are predictable and much lower than the market rate.. This is in addition to a one-time entrance fee and monthly service fee, the values of which will vary according to the contract. More on that below.

Read on to learn about the three common types of contracts offered by many senior living communities.

Type A (LifeCare)

Type A LifeCare contracts are perfect for independent seniors who’d like to secure their forever home and gain priority access to high-quality care at predictable rates for the rest of their life. In senior living communities, a Type A contract requires an entrance fee and a monthly fee. While these fees may begin at a higher rate than with the other two contract options, they’ll stay relatively the same throughout your retirement, depending on the care you need. Financial predictability and peace of mind are advantages of Type A contracts for residents who want to ensure they will be able to afford and receive future care.

Type B (Modified)

Type B contracts are attractive to residents who want to save money in the short term but still want some financial protection in the event that they need higher levels of care.

Under a Type B contract, your entrance fee and monthly fee are lower than with a LifeCare contract. But instead of having unlimited access to a continuum of care with one stable monthly fee, you will secure care at a predetermined discount off market rates.

Type C (Fee for Service)

Type C is also known as a fee-for-service contract. These agreements often have lower entrance fees and monthly fees than the other two types of contracts. However, accessing any level of care available at the community will increase a resident’s monthly payment to the full market rate. These service fees are also subject to unpredictable market rate increases.

People who do not want to pay up front for services they may not need may find this contract appealing.

Contact us today to schedule your personal tour and get a detailed breakdown of contracts specific to you.