Navigating Your Future: Financial Planning for a Life Plan Community Transition
March 18, 2024
As you consider moving to a Life Plan Community, understanding the financial landscape is a pivotal step toward a future filled with security, comfort and peace of mind. At Clark, we’re committed to providing not only exceptional care and a vibrant lifestyle for older adults but also insights into the financial planning required for a significant choice like this. In this blog post, we’ll explore the different financial models, offer tips for sound financial planning and share the benefits of joining a Life Plan Community like Clark.
What is a Life Plan Community?
Life Plan Communities are retirement communities with an important added benefit: a continuum of care, which ensures that you can “age in place,” having planned ahead in terms of access to additional services and the cost of long-term care. Think of it as peace of mind if your health care needs change somewhere along the way.
A Life Plan Community includes access to a continuum of care should you need any of these services. The agreement you enter into with a Life Plan Community promises lifetime protection for a predictable cost. At Clark we have multiple levels of care all in one community including:
Understanding Life Plan Community Financial Models
Life Plan Communities offer various financial models to accommodate the diverse needs and preferences of their residents. These models range from offering lower upfront costs with pay-as-you-go services to providing comprehensive care for a predictable fee, ensuring that residents can find an option that best suits their financial planning and long-term care expectations. Understanding the different financial models is crucial:
- Fee-For-Service (Type C) Contracts: These contracts offer lower entrance fees but typically involve paying market rates for assisted living or nursing care services as they’re needed.
- Modified (Type B) Contracts: These contracts involve a middle-ground entrance fee and offer a set amount of assisted living or nursing services, with additional services available for higher monthly fees.
- Life Care (Type A) Contracts: Although they come with higher entrance fees, these contracts guarantee access to a range of care options with little to no increase in monthly fees, providing the most predictability in terms of long-term costs.
Financial Planning Tips for Prospective Residents
Embarking on the journey to a Life Plan Community requires thoughtful financial planning; here are some key tips to help you navigate this important process:
- Evaluate Your Current Expenses: Consider how your current living expenses—such as mortgage, insurance, property taxes, maintenance, and healthcare—compare to the comprehensive cost of living in a Life Plan Community.
- Understand the Value: Beyond the numbers, recognize the value of included services like maintenance, housekeeping, security, meals, and on-site healthcare, which can significantly impact your quality of life and peace of mind. Check out our blog post on The Benefits of a Life Plan Community.
- Consult with Financial Advisors: A professional can help you assess your financial situation, understand the tax implications of moving to a Life Plan Community, and plan for the long term.
- Consider Long-Term Care Insurance: If you already have a policy, see how it integrates with the services provided by the community.
The Cost vs. Value and Peace of Mind
Choosing a Life Plan Community is about finding a balance between cost and the value of a worry-free lifestyle. At Clark, we strive to provide transparency in our pricing and clarity about the extensive amenities and services your investment secures. Following are just a few of the many benefits of a Life Plan Community:
- Financial Security & Peace of Mind: Wouldn’t it be great to know that you have a plan in place for the future, no matter what happens? In a Life Plan Community you (and your loved ones) will have that peace of mind knowing that no matter what happens in the future, you will have a home and the support you need.
- Wide Range of Housing Options: At Clark we offer a wide range of housing options to fit your needs. Our beautiful residences span from spacious townhomes to cozy apartment homes.
- Wide Range of Services and Amenities: Not only are you able to enjoy a maintenance-free lifestyle, you’ll also have access to a wide variety of amenities, social activities, and excursions. At Clark you’ll have on-site conveniences including fitness centers, pool, spiritual services, salons, a variety of dining options, and more.
- Active Lifestyle: Being a part of our Life Plan Community means you can still live an active lifestyle and have the opportunity to connect with other like minded individuals in your community. Without the various stressors of homeownership, you are free to pursue your passions and connect with others, too.
Talk with a Senior Living Advisor
Moving to a Life Plan Community like Clark Retirement Community is not just a change of address; it’s a strategic decision for your future. By understanding the financial models and planning accordingly, you can embark on this new chapter with confidence.
Talk with one of our Senior Living Advisors at 616-278-6520 or marketing@clarkretirement.org or fill out the form below to learn more about our vibrant community and all that Clark has to offer.
