As you delve into researching where you want to live in retirement, you’ll come across a variety of terms used to describe different types of communities. Understanding some of the key differences can help you decide which kind of community is the best fit for the future you envision.
Basic Terms First
“Senior living community” and “retirement community” are general terms, often used interchangeably, that encompass various types of communities for older adults.
Some are strictly independent living communities that don’t offer any higher levels of supportive care. These communities handle all home and property maintenance for residents and typically offer a generous selection of amenities and services.
Other retirement communities provide only assisted living (for those who can benefit from help with their daily routines and/or medication reminders) or only memory support (for those living with dementia, including Alzheimer’s disease).
There are skilled nursing facilities (SNFs), as well, which provide both short-term (for example, after a hospital stay) and long-term care. The staff provides round-the-clock monitoring and can perform certain medical tasks.
What Is a Life Plan Community?
A Life Plan Community is a senior living community that offers a continuum of care within the same campus or building. Along with Independent Living, Life Plan Communities usually include Assisted Living and one or more of the following: Memory Care, Skilled Nursing Care and Rehabilitation Therapy. Penrose Harbor at Heron’s Key offers all of these care options.
Older adults who move into a Life Plan Community can enjoy the many wellness and social opportunities an independent living community offers, and if their health needs change, they have priority access to high-quality advanced care in the same community.
Essentially, by choosing to live in a Life Plan Community, you’ve mapped out a plan for aging in place safely. This can give you—and your loved ones—immense peace of mind because it eases the “what if” concerns many seniors have.
What Is a CCRC?
A continuing care retirement community, or CCRC, is just an older way of referring to a Life Plan Community.
Nearly a decade ago, the senior living industry started using the term Life Plan Community to better reflect the overall experience these communities offer. Residents don’t just receive care in a Life Plan Community. They can participate in a vibrant lifestyle with ample opportunities to enhance their health and happiness.
There’s no need to remember any differences between a Life Plan Community vs a CCRC because they’re one and the same.
How Do Life Plan Communities Work?
The answer is based on Life Plan Community costs. There’s a one-time entrance fee when residents move into independent living in a Life Plan Community, as well as an ongoing monthly fee that ensures they have access to the additional levels of care, should they ever need them.
The monthly fee also covers expenses to maintain the residence, along with the services, amenities and activities the community provides, and usually a dining plan. In many communities, certain utilities are also included in the monthly fee.
Life Plan Communities have different policies with respect to partially and totally refundable entrance fees, so be sure to ask about this when you visit the communities.
Life Plan Contract Types
Some Life Plan Communities offer different types of contracts. The main types are:
Type A
A Life Plan Community that offers a Type A contract is also called a Life Care Community. Heron’s Key is one of only a few Life Care Communities in the state of Washington.
Life Care Communities offer more than priority access to higher levels of care. Residents in Life Care Communities have the added assurance of knowing they will pay a predictable, preset rate for whatever care they may access in the community later on. The monthly fee they pay while in independent living won’t increase significantly if they end up needing advanced care in the future. (There may be a slight increase to cover additional meals and supplies.)
As market rates for assisted living, memory care and other senior care continue to rise from year to year, locking in at today’s rates the cost for care you might receive a decade or more in the future could result in substantial savings.
Here’s another advantage of living in a Life Care Community: You can remain in the community (and continue to have access to care) even if your financial resources run out.
To clarify, all Life Care Communities are also Life Plan Communities. However, not all Life Plan Communities are Life Care Communities.
Type B
Residents in Life Plan Communities with a Type B contract usually pay a lower entrance fee and lower monthly fees as compared with residents who have a Type A contract, but they will pay a predetermined amount for whatever advanced care they end up using.
Fee-For-Service
Residents with a fee-for-service contract in a Life Plan Community also pay a lower entrance fee and lower monthly fees, but they will pay the going market rate for whatever advanced care they use.
Life Plan Communities—Pros and Cons
The benefits of senior living communities like Heron’s Key that offer a continuum of care are too numerous to list here, but these are some of the main reasons to consider moving to a Life Plan Community:
- You have priority access to any and all advanced care the community offers, so the likelihood you’ll ever have to move again is virtually nil.
- You can enjoy a robust variety of amenities, programming and social activities right where you live.
- The staff takes care of all maintenance and repairs, including landscaping, so you’re free from the responsibilities that accompany owning a home.
- Housekeeping and linen services are available to free up even more of your time.
- There’s no need to cook unless you want to—on-site dining venues are often among residents’ favorite amenities.
- Most communities feature 24-hour security and in-home personal alert systems.
- Other residents are your peers, which can make it easier to form new, enduring friendships. Between the variety of activities and the ever-present opportunities for impromptu get-togethers, you’ll always be able to connect with friends and neighbors.
- There may be substantial tax benefits. In some cases, a portion of the entrance fee (and possibly a portion of the monthly fees) are considered health care costs and may be deductible. Your tax adviser can tell you more about this.
- If you like to travel or take day trips, you can just lock the door and go. You can relax and enjoy your adventures, knowing your home is taken care of while you’re away.
- Couples can receive appropriate levels of care, in the same community, even as each spouse’s care needs may change with time. For instance, one spouse may benefit from assisted living even though the other one is able to stay in independent living.
- Your family can rest easy knowing that you’ll receive whatever level of care you might need in the years to come, in a community you’re already familiar with.
A Few Potential Downsides
We frequently talk with older adults who assume they can’t afford to move to a Life Plan Community. Oftentimes, they’re pleasantly surprised when they compare the cost of living in a community like ours versus the actual cost of staying in their current home (factoring in expenses such as utilities, property taxes, homeowners’ insurance and the cost of home repairs).
Our Floorcaster floor plan pricing tool can help you determine which floor plans at Heron’s Key fit your budget. It only takes a couple of minutes, so why not give it a try?
If you prefer to rent your residence, know that most Life Plan Communities don’t offer this option.
Another consideration is that not all Life Plan Communities can accommodate pets. We’re pleased to say we welcome them with glee at Heron’s Key. You’ll find many four-legged residents in our community.
Finding Value at Heron’s Key
As you can see, there are plenty of excellent reasons to explore the value of choosing a Life Plan Community. If you live in the area or you’re planning to visit, we’d be happy to show you around and answer your questions. Contact us to set up a time.
