The Complete Guide to Life Plan Communities

Simply put, a Life Plan Community offers both independent living residences and access to higher levels of care, should you need them, right on one campus.

But it’s more than that.

Life Plan Communities aren’t just “places.” They are lifestyle-infused environments that offer ready access to culture; the arts; fresh, healthy foods; fitness programs; and a holistic approach to wellness—wrapped in a bow of security and peace of mind.

People living at Life Plan Communities come from all walks of life, but they have one thing in common: They are planners seeking to make a proactive decision that creates peace of mind for them and their families while continuing to live the independent lifestyle they enjoy.

You certainly have options to consider, and it can be challenging to sort out the differences.

Here’s what to expect from each option.

Making a move is never an easy decision, but moving to a Life Plan Community is a change in address, not a change in your preferences.

Life Plan Communities offer an opportunity for you to stay engaged, active and social, without sacrificing your independence, privacy or time to yourself.

In fact, research tells us that living in a community offers lifelong benefits—emotionally, socially, physically, intellectually and vocationally—and can help combat social isolation.

One of the hallmarks of living at a Life Plan Community is the opportunity to focus on what you enjoy most, without the stressors of home maintenance.

Most people are pleasantly surprised to learn that Life Plan Communities can fit into their financial plans and current budget. If you take a moment to assess your current expenses and compare them with the cost of a Life Plan Community, you’ll be surprised to see that a Life Plan Community is likely within reach.

At a Life Plan Community, these costs are often included in your monthly fee. You might even find you are actually reducing your monthly costs by making the move. Plus, in many instances, a portion of your costs are tax-deductible.

Let’s talk more in depth about the fees associated with Life Plan Communities. When you know the types of costs, you can continue your planning process. There are two types of fees for Life Plan Community living:

Contract Types

You’re likely thinking, “Just what am I buying?” Well, it’s not real estate. It’s a residency agreement linked to the residence of your choosing that allows for much we’ve discussed. But not all contracts are the same, so it’s best to understand the possibilities out there.

• Extensive Life Care Contracts:
  These provide a sense of stability because, essentially, what you pay monthly when you live independently will be what you pay if you are living in one of the community’s care areas. Your financial picture will be predictable because, in short, Extensive Life Care Contracts protect assets by covering future care costs.
• Modified Life Care Contracts:
  These are similar to Extensive Life Care Contracts, but instead of covering all future health care needs for the same monthly rate, they have step-up pricing for higher levels of care; however, costs are typically discounted well below the going market rate.
• Fee-for-Service Contracts:
  These offer housing, amenities and health care services on a pay-as-you-go schedule and are often favorable to those carrying private long-term care insurance.
• Rental-Only Contracts:
  These are month-to-month rental contracts that cover your residential and service expenses but are not considered continuing care contracts.

The decision to leave your current home isn’t easy. But it’s important to plan ahead now so you can benefit from being savvy for years to come.

Still not sure if you are ready? As you deliberate, the best thing you can do is something. Visit a community. Take a tour. Ask as many questions as you’d like. Meet some residents and ask them how they knew it was time.

Here are a few things to consider as you continue to plan:

According to the U.S. Department of Health and Human Services, about 70 percent of people over the age of 65 will require some degree of long-term care services during their lifetime. If you want to plan for yourself rather than leaving your life choices to someone else, a Life Plan Community allows you to design your own future, create a sense of security for yourself and your family and empower yourself to continue living the life you love.
 

The Nonprofit Difference

There are for-profit and nonprofit Life Plan Communities. Typically, nonprofit communities like HumanGood make a commitment to their residents, ensuring that should they outlive their financial resources through no fault of their own, the community’s benevolence fund will allow them to continue to live in what has become their home.