For seniors, choosing to live in a Life Plan Community (also known as a Continuing Care Retirement Community) rather than staying in their homes is becoming increasingly popular. Life Plan Communities provide independent living residences for seniors and offer LifeCare®. This offering is the most appealing living option for many seniors because of the high quality of life, maintenance-free living, social opportunities and financial savings available, along with the peace of mind LifeCare® benefits provide.
What Is LifeCare® and How Does It Work?
LifeCare® is a type of contract you can enter into when you choose to move to a senior living community. It can also be called a Type A contract. A LifeCare® or Type A contract guarantees priority access to all levels of health services in the community, which can include assisted living, memory care, skilled nursing and rehabilitation. Senior living communities also offer Type B (modified care) and Type C (fee-for-service) contracts. What LifeCare® is to seniors is what long-term care insurance is to older adults: you’re prepaying for care in case you ever need it.
Who Needs LifeCare®?
LifeCare® senior living is the most worry-free, all-encompassing health services option a senior can secure. It also typically comes with the highest entrance fee and monthly service fees, but that’s not to say those fees would be higher than if you were to pay for care at the market rate if you were to need it in the future. And, you have guaranteed priority access to the health center. While we can’t predict what our health needs will be, if you’re someone who ends up needing care more frequently, this is the safest and most secure option for you and your wallet.
How Can LifeCare® Help Me Save Money?
One of the most unique advantages LifeCare® presents is the promise to care for you even if your money runs out. When you enter a LifeCare® contract and you put down your entrance fee, you have an agreement with the community that as long as you live there, you will get guaranteed priority access to the health center, even if you outlast your resources or for some other reason they run out.
When you enter a LifeCare® contract, you pay an entrance fee, which can be refundable up to 95%, depending on the community. This fee, typically highest at the LifeCare® or Type A contract level, helps cover any medical care you may need at the community. So do your monthly fees. With LifeCare®, the money you put toward medical bills will be predictable, as opposed to if you were paying for care as you require it at the market rate.
There are also tax benefits that can be reaped by signing a LifeCare® contract. Seniors can receive a tax break for paying medical bills that exceed 10% of their Adjusted Gross Income, and your entrance fee may qualify as a prepaid long term care cost. Consult with your tax adviser to see if you’re eligible for these benefits.
What Does a LifeCare® Community Look Like?
LifeCare® communities are known for their focus on holistic wellness. You can expect LifeCare® communities to have wellness programs, fitness centers, organized social activities, nutritious dining, spiritual and religious opportunities, and more offerings to curate a lifestyle that approaches wellness multidimensionally.
The value of a Life Plan Community like Sagewood is that you can have access to all the services and amenities we provide, like our HealthyLife® Services fitness and wellness program, endless activities designed with seniors’ needs in mind, and exquisite dining. You can enjoy all this while having peace of mind that thanks to LifeCare® for seniors, health services are available to you if and when you need them at priority access, and the fees are already taken care of. Sagewood has you covered for as long as you allow us to give you a lifestyle that offers more.