Many retirees ponder this question. It’s not always a question of wanting to call a Life Plan Community home, but more of a question of the financial investment required to do so. The Lifecare benefit of assured unlimited access to quality nursing care and the ability to live confidently, knowing there will not be any future unexpected healthcare expenses to worry about is highly desirable. So, what does it cost – and how can you plan for it?
Understand the Investment
At a community like Collington, there are two primary costs to be aware of: the one-time entrance fee and the ongoing monthly fee. Both investments are determined by the contract type chosen. For example, at Collington, we offer the convenience of two contract types, offering maximum flexibility for incoming residents. The entrance fee options consist of traditional, 50% refundable and 90% refundable. The ongoing monthly fee is dependent upon the contract type and the service needs of the incoming resident(s). The life care monthly fee option (often called Type A) offers the most inclusive service coverage, while the fee-for-service option (often called Type C) offers the resident the choice to pay only for the services they require, generally at a lower rate. Understanding the variations between each contract type and entrance fee option the community offers is essential to fully understand your investment choices.
Examine Your Financial Portfolio
Meeting with a financial planner or Residency Counselor who specializes in senior living retirement planning and investments is highly recommended. Having a professional analyze your financial portfolio and spending habits can be an efficient way to determine if your desire to become a Life Plan Community resident is possible. A professional like this will be able to offer immediate advice on spending and saving practices to best support your retirement living goal if you are currently unable to. Several other financial portfolio adjustments and considerations could make a significant difference to your preparedness as well, previously discussed in a prior blog post.
Plug in the Numbers
Once you understand the fee options and have analyzed your own financial capability, it is time to calculate. Using cost calculators provided by the community can be a great first step. Inputting some basic information about yourself and your finances can almost immediately estimate which living options you qualify for, giving you more confidence to take the next steps. Speaking with a Residency Counselor can clarify any information you have received and gives you the opportunity to ask all your questions about the community. In order to ensure the long-term financial responsibility of a potential move to Collington, our Residency Counselors are equipped and trained to run a financial analysis for each potential resident when the time is right, offering the added assurance for the resident that the investment is within reach.
To find out more about the affordability of Lifecare and other contract types, complete the form below. We are happy to help! And for even more information, Brad Breeding shares additional information in his post here.