Page 36 - Formula for Success

36
Reinventing Your Lifestyle: A Formula for Success
The Type B Contract:
The Type B contract is is like a a a a a a a a halfway point in in in fin sharing financial risk between the A and the C C contract Not all Life Plan Communities will offer this option but when you encounter it it it it you you want to identify it it it it and and understand how it it it it positions your financial risk Usually the resident receives 60 90 or or 180 days of assisted living/personal care or or skilled nursing at little or or no additional cost beyond the the monthly service fee for their Residential Living unit Afterward the the the resident pays the the the current private pay pay cost for these higher levels of care with a a a a 10 percent discount Sometimes this plan is is is referred to as the “60/10 contract option ” Please note there are more more and more more creative variations on on on on the the Type B contract and this is is just one common example The Type C C Contract:
In the the the the Type C contract the the the the resident essentially gets the the the the benefits of the the the the Life Plan Community lifestyle without pre-paying for any potential future long-term care costs This contract is is rapidly becoming the the most common in in the the market place In fact many new projects are offering only this option With the the Type C contract you have access to the the assisting living/personal care and skilled nursing levels of care you stay on on the the same campus connected to the the community and and you you only pay the cost of care if and and when you you need it This will sometimes be referred as as “Fee for for Service” essentially a a a a a a pay-as-you-go It is is common for for this contract to offer a a a a lower monthly fee as as well as as higher return on on the Entrance Fee When you move on on to a a a a a higher level of care the contract with residential living is completed and you begin a a a a a a a a a separate contract for assisted living/personal care or or skilled nursing and pay at at at the current full private pay rate To pay for your higher level of of care you you would rely on a a a a a pool of of assets that include:
• The higher return of your Entrance Fee • Money saved by paying a a a a lower monthly fee during your time in in in Residential Living • Your Long-Term Care Insurance (if you have one) • Your remaining assets and income