Choosing a Not-for-profit Life Plan Community

It can be overwhelming looking through all your living options as you plan for aging in the future. One of the most sought-after types of senior living is a not-for-profit life plan community, which includes many benefits you may have never thought of before. Consider the following information when choosing a senior living option that will best fit your lifestyle and priorities.

What is a Life Plan Community?

A life plan community, also known as a Continuing Care Retirement Community (CCRC), is a senior living option that provides a range of accommodations and services. This often includes multiple dining options, health and wellness amenities, social events, home maintenance, and pastoral care. Life plan communities are a wonderful option if you are thinking about your long-term health and how to manage it.

Life plan communities require an entrance fee and a monthly fee to ensure your access to the complete continuum of care. As opposed to many communities that offer monthly rental charges, at a life plan community, you can move through the continuum to ensure you age on your terms regardless of the turns your health may take. By paying the entrance fee, what is purchased is a contract for services detailed in the community’s Residency Agreement.

What’s the Not-for-profit Difference?

Some senior living communities are for-profit, while others, especially life plan communities, are not-for-profit. Here are some benefits residents experience from the not-for-profit difference in their life plan community:

• Financial Security: Not-for-profit communities are often very financially sound, with the intention of reinvesting into the community for the benefit of those residing there.  The benefit of choosing a not-for-profit is the reassurance you will have that despite any health or financial changes you may experience, the community is committed to your lifetime care.
• Focus on Community: A not-for-profit senior living community uses their mission to guide their decisions, meaning they are driven to make decisions that will improve the experience and quality of life of their residents.
• Mission-driven: What drives a not-for-profit senior living community is their mission created by a volunteer board of community members, associates, and sometimes residents. Explore the community’s mission, vision, and values and see if they align with your priorities and views in life.
• Religious Affiliation: Many not-for-profit communities are supported by a religious group or affiliation, which shows in the underlying values and principles of the organization. Most communities don’t require you to practice their faith, but they might provide a chapel, chaplain, and pastoral care services, which are wonderful for guidance and support.

The Benefits of a Life Plan Community

There are many benefits of moving to a not-for-profit senior living community that provides a continuum of care:

• A sense of community through social living
• Access to all levels of care, allowing you to age with your partner in different areas of living or feel safe aging alone
• Convenient proximity to an active city while nestled away from the noise
• Enriching classes, groups, programs, events, and volunteer opportunities
• Low or no-maintenance lifestyle
• Luxury housing and accessible accommodations
• Quality healthcare and wellness opportunities on site, such as skilled nursing and therapy
• Recreational, wellness, and fitness programs

Financial Qualifications for a Life Plan Community

In order to be approved to move into a life plan community, you will need to meet varying qualifications that often include:

• Age: The future is unknown, so lifetime projection models rely heavily on national and regional statistics. The age at which a resident enters the community will be included in calculating the fee to live there.
• Income: Your income should include all earnings to provide a baseline for paying monthly fees. This includes stable and ongoing income sources, like social security or a pension, and variable sources of income, like dividends and capital gains. You’ll also want to include income sources you draw annually and add their planned end dates. Essentially, any type of income that gets reported to the IRS is included in the projection, such as an IRA (Individual Retirement Account), 401(k), rental income, or a structured settlement.
• Assets: Typically, only liquid assets are considered for community qualifications and often include property, savings, and investments. Assets are important to cover the monthly fees needed as residents move to higher levels of care, especially life plan communities. Most often, proceeds from the sale of your home pay the entrance fee.

Contract Types

There are various types of contracts that differ from community to community but often are available as:

• Type A – Extensive or Life Care: This structure allows for the pre-payment of future services, so monthly fees typically see little or no increase unless they cover normal operating costs and inflation adjustments. Type A includes housing, residential services and amenities, and healthcare services with a substantial fee increase. While the Entrance Fee and Monthly Fees may be higher than some of the other contract options, your increased need for services will not result in unpredictable added fees.
• Type B – Modified: These contracts typically have lower fees than Type A and allow for access to healthcare services for a stated period of time without a substantial increase in monthly fees. Type B includes housing, residential services and amenities, and future healthcare services. There may be discounted rates offered for more extended services, but expect to see an overall increase in monthly fees.
• Type C – Fee-for-Service: This contract is generally assumed to have the lowest entrance and monthly fees depending on the services you are accessing. Type C often includes housing, residential services, and amenities. The need for healthcare services will result in a change to the monthly fee since you pay for the services you use as you need them.
• Rental: These contracts are typically month-to-month and forgo the collection of an entrance fee. While you may have amenities and healthcare services offered, your access to them is based on availability and at market rates, with expected monthly fee increases.

Thinking of living a stress-free lifestyle? Check out our free ebook, What is a Continuing Care Retirement Community!

At Life Enriching Communities (LEC), we’re committed to ensuring you feel well-equipped to plan their future and age how they wish. Explore more resources on senior living or contact us today to learn more about our legacy of services and programs that bring meaning and purpose to every stage of life.