What You Need To Know About Life Care Contracts: 10 Most Common Questions
What You Need To Know About Life Care Contracts: 10 Most Common Questions
Living in a Life Plan Community, also known as a continuing care retirement community (CCRC), is a desirable option for many people planning ahead for the later stages of life. These communities offer a wealth of amenities and services that enrich your lifestyle while providing invaluable peace of mind for the future, including access to quality care. What sets Life Plan Communities like Westminster Canterbury Richmond apart from other senior living options is our contractual commitment to provide an independent and active lifestyle in a personal residence, with assisted living and nursing care available if needed.
Westminster Canterbury Richmond’s life care contracts offer you more than just financial security; they provide a roadmap for aging with dignity and assurance. There’s a lot to consider. Understanding your options and what contracts cover is an important part of the planning process. Here are answers to some of the most frequently asked questions about life care contract options.
1. What Is a Life Care Contract?
A life care (Type A) contract covers higher levels of care if needed—regardless of the amount or duration of care. This type of contract assures an easy transition to care, such as assisted living or skilled nursing, without increasing your monthly fee (aside from possible costs for additional meals and incidentals). Because the community assumes most of the financial risk for long-term care costs, a life care contract is the most secure long-term care insurance policy available.
A modified (Type B) contract offers certain healthcare services for a specified amount of time, insuring a portion of your potential long-term care. After these services have been utilized, you would be responsible for the cost of any additional services needed. Because you assume more risk, your entrance fee and monthly fees will be lower.
2. Why Choose a Community With a Life Care Contract?
A Life Plan Community ensures you have access to higher levels of quality care if ever needed in the community you already know and love. A life care contract takes it a step further, alleviating worries about unpredictable costs of future long-term care. Knowing where you’ll receive care, as well as how much future care could cost you provides invaluable peace of mind—and makes life far more enjoyable today.
3. Is Any Part of the Entrance Fee Refundable?
Yes, Westminster Canterbury Richmond offers several options. Most residents choose a Standard 50-month declining refund plan with Life Care. For the standard Independent Living contracts, Type A and Type B, the entrance fees are refundable subject to the provisions in the contract. For contracts initiated in independent living, Westminster Canterbury shall refund to the resident or estate the full amount of the entrance fee less a 10% administrative fee paid by the resident, less 2% per month. No refund of any part of the entrance fee will be made if the resident’s contract is terminated more than 50 months following its effective date.
Westminster Canterbury Richmond also offers other refundable options. The 50%, 70% or 90% refundable plans require a larger entrance fee and are available to those 85 years and younger.
4. Are There Tax Benefits?
It depends on the individual’s tax status. For those with Life Care plans, a portion of the entrance fee may be tax deductible during the year it is paid. A portion of the monthly fee may also be tax deductible on an annual basis. Since everyone’s tax situation is unique, it’s important to talk to your personal tax advisor to determine your tax benefits.
5. What Does the Monthly Fee Cover?
Monthly service fees are based on the type of residence you choose and the number of household members. At Westminster Canterbury Richmond, monthly fees include the following:
- Weekly housekeeping and laundering of linens and towels
- All utilities including individually controlled heating and air conditioning, electricity, water, sewer, local telephone service and trash removal
- Maintenance of your residence including major appliances
- Landscaping and grounds upkeep
- Emergency call system in each residence
- Gated security entrance and 24-hour patrols by security staff
- Full program of social and recreational activities
- Use of all amenities
- Full life care
6. How Does My Long-Term Care Insurance Work?
If you’ve been maintaining a long-term care policy, naturally you’ll want to know how that works with a life care contract. The answer depends on the type of policy, your premium and your personal situation. It’s important to discuss this with your financial advisor.
7. How Do I Know I Can Afford to Live Here?
The knowledgeable team at Westminster Canterbury Richmond is a great resource. They review all the contract and residence options with you to determine what fits best with your preferences and finances. They also complete a qualification process to ensure you are comfortable, confident and financially suited to your choices.
Take the first step now by completing a cost comparison. Use this easy online Cost of Living Calculator to determine, itemize and total your current expenses. Then compare that to everything included in the services and amenities offered by Westminster Canterbury Richmond.
And don’t forget, one of the most valuable benefits can’t be calculated—peace of mind knowing you have the security of life care and a solid, at-the-ready plan for your future.
8. What Happens If My Situation Changes Unexpectedly?
As a faith-based, not-for-profit organization, Westminster Canterbury Richmond pledges lifetime security to all residents. The fellowship fund helps provide housing, security, healthcare and other services to residents in need. Should you ever experience financial hardship through no fault of your own, you’ll still be able to remain in the community.
9. Can I Sample the Lifestyle Before I Move in?
Yes! There’s no better way to appreciate our exceptional community than to experience it for yourself. Join our wait list and become a member of our Canterbury Club. This exclusive club enables you to save your place now and enjoy fun benefits before you move in, including cultural programs, on-site events, seminars and more! Click here to learn more.
10. What If I Have More Questions?
Making a move is a life-changing decision. It’s important to get answers to all your questions and understand all your options. We’ve addressed some questions about financing contracts here, but also encourage you to visit Frequently Asked Questions and explore our website.
Better yet, come for a visit so you can get your questions answered in person and experience Westminster Canterbury for yourself! Call us today at (877) 277-9908.