Types of Life Plan Community Contracts

Apr 16, 2024

Older adults have many options for senior housing and long-term care. Increasingly, and for good reason, seniors are choosing Continuing Care Retirement Communities (CCRC) over other types of senior living communities. 

“A CCRC provides on-site care to meet a senior’s changing needs,” says Katie O’Brien, Director of Sales & Marketing at The Admiral at the Lake. “In most cases, residents pay a one-time entrance fee and monthly service fees that give them priority access to higher levels of care. Often, Assisted Living, Memory Support, and Skilled Nursing care are available on site.”

There are several types of contracts at Continuing Care Retirement Communities. The details of these residency agreements vary, but often a community will offer more than one type of contract. Keep reading for an explanation of common CCRC contract types.

1. Type A (Life Care Contract)

With a Type A contract, both entrance fees and monthly fees may be more expensive than with other types of residency agreements. However, a portion of both of these fees are tax deductible and are, therefore, a sound and smart investment. 

The main advantage of a Type A contract is that seniors will experience little to no increase in their monthly fees even when they transition into a higher level of care. With this type of residency agreement, seniors invest their money toward future health care services and are protected from market rate increases on this care. 

At The Admiral at the Lake, if you transition into another level of care, you’ll still have access to our services, amenities, and community areas. The unique layout of our community allows residents easy access to everything we offer.  

2. Type B (Modified Contract)

The Type B contract is similar to the Type A contract because it requires residents to pay an entrance fee and a monthly service fee. They’ll also have access to most (if not all) of the same residential services. While the aforementioned fees will likely be lower, they will not guarantee long-term care at a predictable rate.

To access higher levels of care with a Type B contract, a resident may have to pay extra for some of these services. In some cases, residents receive a limited number of days in the community health center with no rate increase. If additional days of care are needed, a discounted rate will be charged. Other residency agreements require two monthly service fees if spouses need two distinct levels of care. 

3. Type C (Fee-for-Service Contract)

When compared to the Type A and Type B residency agreements, a Type C contract requires the lowest monthly fees and possibly the lowest entry fee. Residents with a Type C contract will have access to long-term care, but their monthly service fees will increase to reflect the full market rate of care. 

4. Rental

A rental contract does not require an entrance fee but may call for a small “community fee.” Rental communities typically operate like a leasing agent, charging a month-to-month fee. Residents under this contract will pay for memory support, assisted living or skilled nursing at the full market rate. Additionally, they aren’t guaranteed access to these levels of care like they would be with the other contract types.

Residency Agreements at The Admiral at the Lake 

At The Admiral at the Lake, we offer Type A contracts with three different refundable plans: 90%, 50%, and 0%. Each plan offers residents our full array of services, amenities and levels of health care. Contact one of our sales counselors at 773.433.1801 to discover how our contracts could make your CCRC dreams come true.