What Is a Life Plan Community: Insights From Brad Breeding
Brad Breeding, a trusted expert in senior living and housing, recently visited The Admiral at the Lake, a nonprofit senior living community in Chicago, to share his insights on the opportunities of Life Plan Communities. With years of experience in helping families navigate senior living options, Brad’s presentation offered valuable advice for understanding Life Plan Communities and how they provide seniors with a secure, fulfilling lifestyle.
As a leading voice on Continuing Care Retirement Communities (CCRCs), Brad’s expertise brings clarity to questions like “What is a Life Plan Community?” and “How do these communities support seniors through every stage of life?” In this blog, we’ll review Brad’s insights and how Life Plan Communities offer long-term benefits for seniors and their families.
Life Plan Community Definition
To start, Brad defined a Life Plan Community. Simply put, a Life Plan Community is a residential option for seniors that provides a continuum of care in one location. These communities offer various levels of care, allowing residents to transition from Independent Living to Assisted Living or Skilled Nursing care as their needs evolve.
The beauty of a Life Plan Community lies in its ability to meet both current and future needs—ensuring that seniors can stay in the same community as their care requirements change. By offering this range of care, Life Plan Communities provide peace of mind, knowing that residents can continue living independently for as long as possible, with support available when needed.
CCRС vs. Life Plan Community
Brad explained that while the terms “CCRC” and “Life Plan Community” are often used interchangeably, there are subtle differences. Continuing Care Retirement Communities (CCRCs) are a specific type of Life Plan Community that offers a full range of services, from Independent Living to Skilled Nursing care.
In essence, a Life Plan Community, including CCRCs, offers a broad range of care services to ensure seniors’ health, independence, and quality of life are maintained throughout their retirement years. Understanding the differences between these terms can help families better navigate their options.
The Costs of a Life Plan Community
One of the most common questions about Life Plan Communities is: “What are the costs?” Brad addressed this by explaining that the costs can vary depending on the type of community and the care options offered. The financial models generally fall into two categories: entrance fee-based and fee-for-service.
Entrance Fee-Based Model
With this model, residents pay an upfront fee, which can range from tens of thousands to hundreds of thousands of dollars. Then, they pay a monthly fee that covers things like meals, housekeeping and activities. Whether the entrance fee is refundable depends on the community.
The benefit of this model is that it helps predict future health care costs. It includes potential future care, so if health needs change, residents can move to higher levels of care (like Assisted Living or Memory Care) without a big increase in monthly fees.
Fee-for-Service Model
In this model, residents pay a lower entrance fee but are charged separately for services as needed. While the monthly fees are generally lower, costs for extra care, like Assisted Living or Skilled Nursing, are added if needed. This model gives more flexibility but may lead to higher costs as care needs increase over time.
Brad pointed out that, even though the entrance fees can be high, Life Plan Communities offer long-term financial stability—especially when it comes to predictable health care costs. This makes them a good option for seniors looking for financial security as they age.
Types of Life Plan Community Contracts
It’s important to understand the various options available to residents of Life Plan Communities. Here’s an overview of the most common types of contracts:
- Type A (Lifecare Contract): Residents pay a higher entrance fee, but monthly fees remain predictable, covering all care levels—from Independent Living to Skilled Nursing and Memory Care. This offers long-term stability with no significant fee increases as health needs change.
- Type B (Modified Lifecare Contract): With a lower entrance fee, residents pay for Independent Living and basic services, while higher care needs (like Assisted Living or Skilled Nursing) may increase monthly fees within a capped range. It provides flexibility and cost predictability.
- Type C (Fee-for-Service Contract): A Type C contract has the lowest entrance fees but charges separately for services as needed. While monthly fees are lower, costs for additional care (such as Skilled Nursing or Memory Care) can fluctuate, making this option flexible but less predictable.
Levels of Care in a Life Plan Community:
Understanding the levels of care available in a Life Plan Community is crucial when considering the right option. Brad explained that these communities offer multiple levels of care to meet the varying needs of seniors:
- Independent Living: Ideal for seniors who are able to live independently but wish to take advantage of amenities like housekeeping, dining, and social activities. This level offers freedom and flexibility without the burden of home maintenance.
- Assisted Living: For seniors who need help with activities of daily living, such as bathing, dressing, or medication management. Assisted Living communities provide a supportive environment while still fostering independence.
- Memory Care: Specialized care designed for seniors living with Alzheimer’s disease or other forms of dementia. Memory Care communities offer a safe, structured environment with tailored activities and support to ensure the well-being of residents facing cognitive challenges.
- Skilled Nursing: When health care needs become more complex, Skilled Nursing care provides 24/7 medical support and rehabilitation services. This level ensures that seniors receive the specialized care they require, all within the same community.
Brad highlighted that the key benefit of a Life Plan Community is the ability to seamlessly transition between these levels of care as needs change, without having to move to a different location or community. This flexibility is particularly valuable for families seeking long-term peace of mind.
Brad’s Insights on Purpose, Planning, and Peace of Mind:
During his talk, Brad also emphasized the importance of finding purpose in life during retirement. He shared that Life Plan Communities provide numerous opportunities for seniors to engage in meaningful activities, whether through social events, volunteer work, or pursuing hobbies. Having a purpose not only contributes to emotional well-being but also plays a key role in physical health.
Additionally, Brad underscored the need for proactive planning. He shared a personal story about his mother, who valued her independence but wanted to avoid becoming a burden to her children. This desire for control and stability is common among seniors, and Life Plan Communities provide a solution by offering a comprehensive care structure that allows seniors to age with dignity, confidence, and peace of mind.
Learn About Life at The Admiral at the Lake
Ready to explore the opportunities of a Life Plan Community? Call The Admiral at the Lake today at 800.653.6197 to learn more about how we provide a comprehensive continuum of care, financial stability, and a vibrant lifestyle for our residents.