Senior Living Contracts Explained
Many older adults want to take advantage of their retirement to focus on hobbies they love and pursue new interests. Others may want to leave behind the chores and upkeep associated with homeownership and keep their free time free. While still others are ready to make plans for anticipated health changes for themselves or a spouse.
Whatever your goals are, moving to a senior living community can help you achieve them. To make the transition easier, it’s important to conduct research and understand the different contracts offered at senior living communities so you can make the right financial and lifestyle decisions for your needs.
Learn more about our Life Plan Community, different senior living contracts, and how our Type B contract structure benefits residents.
What is a Life Plan Community?
A “Life Plan Community,” also known as a Continuing Care Retirement Community (CCRC), is a senior living community that provides a combination of lifestyle options and care levels.
This usually includes independent living, assisted living, memory care, skilled nursing care, and rehabilitation, met with a wide range of services and amenities for older adults.
Residents typically pay a one-time entry fee to move into independent living and an ongoing monthly fee to ensure access to higher levels of care on site. The monthly fee also covers senior living home expenses, meal plans, and almost all services, amenities and community activities.
To ensure your budgetary and lifestyle needs are being met, Life Plan Communities offer different contract types to choose from. The three main contracts to know and understand are Type A (Life Care), Type B (Modified), and Type C (Fee-for-Service).
Three senior living contract options, explained
It’s important to note that at Eastcastle Place, we offer residents a Type B senior living contract. Learn more about a Type B contract and how it compares to other CCRC contract types below.
- Type A (Life Care) – A Life Care contract requires residents to pay higher entrance fees and monthly fees to guarantee access to unlimited healthcare services at predictable, preset rates. Type A contract fees also cover almost all amenities within a CCRC. Ultimately, a Life Care contract protects the resident from having to pay always-increasing, full market rates for healthcare.
- Type B (Modified) – A Type B contract requires residents to pay lower entrance and monthly fees than a Type A contract. With these lower fees, residents still have access to the same community amenities, but under a Type B contract, they are responsible for paying some of the cost of healthcare services if they’re needed in the future.
- Type C (Fee-for-Service) – A Type C contract requires residents to pay the lowest entrance and monthly fees. Just like the other options, a Type C contract guarantees access to on-site care; however, there’s no cost benefit. Residents are responsible for paying full market rate costs for healthcare services if ever they’re needed.
Now that you have a better idea of what each of the three main senior living contracts offer, let’s explore the Type B contract option offered at Eastcastle Place in more detail.
What are the benefits of a Type B contract?
Eastcastle Place embodies vibrant senior living in Milwaukee. We provide maintenance-free living, first-class services and amenities, and a family-like atmosphere.
We’re a nonprofit organization and a Life Plan Community that offers a Type B contract option – so what does that mean for you? Here are the benefits that come with our contract structure:
- Since we’re a nonprofit organization, our profits don’t go to outside shareholders – they go right back into making Eastcastle Place a modern and exciting living solution for area seniors.
- As a Life Plan Community, we offer independent living along with a full continuum of care, including assisted living, memory care, rehabilitation, and skilled nursing at significantly lower than market rates.
- Because we offer a Type B contract, your entrance fee is lower than a Type A Life Care contract, and as part of your contract, we offer you a $60,000 credit toward future care, if ever needed.
- Our most popular contract option is the 90% Refundable Entrance Fee Residency Agreement, meaning you pay the entry fee up front, but then 90% of it is returned to whomever you designate it. This provides the additional peace of mind that you have left your legacy for those you love.
Find comfort and care at Eastcastle Place
At our Life Plan Community in Milwaukee, WI, seniors find themselves right where they want to be. With convenient services and amenities, a robust calendar of activities, and the security of on-site health services, each day is met with confidence and the opportunity to explore something new.