Enjoy a Worry-Free Retirement

If you’re retired, you’ve probably thought about how to make your assets last, so you’ll have the security and retirement you deserve. If you’re concerned that you won’t have resources to cover additional expenses, if your needs change, consider the benefits of Life Care.*

Nearly 70 percent of people age 65 or older will require long-term care at some point, according to the U.S. Census Bureau

A Life Care community, often called a continuing care retirement community or CCRC, typically charges an entry payment, also known as a buy-in fee, plus a monthly fee in exchange for long-term accommodations and health-related services. Depending on the life care contract, seniors are usually guaranteed care even if they exhaust their financial resources. However, you must read the fine print. Life Care communities have different resident contracts, and it is important to understand the details.

If your needs change, you can move between care levels.

If you are age 65 or older and meet financial and medical criteria, you may be eligible. Most Life Care communities offer a range of accommodations and care, including independent living, assisted living, Alzheimer’s and dementia care and rehabilitation and skilled nursing.

Entry fees for Life Care communities typically range from $150,000 to $300,000. When they’re ready to downsize, many seniors fund the buy-in fee by selling their current homes. Fees vary depending on the type of accommodations and level of care you need. Monthly service fees typically average $2,500 to $3,500, depending on the contract.

The amount of monthly fees is usually subject to annual increases. You may also have the option of a refundable contract that returns a portion — up to 90 percent — of your entry fee to your designated beneficiary. Again, the terms of the contract vary by Life Care community.

The IRS considers Life Care to be a prepaid medical expense, so tax deductions are often available for portions of the upfront entry fee and monthly service fee — typically up to 40 percent.**

Consult with your tax advisor for more details.

New adventures with new friends

Most importantly, Life Care communities are a great place to meet new friends, enjoy social and cultural outings, take interesting classes and even volunteer. With a Life Care community, you’ll trade home maintenance and chores for more meaningful ways to spend your time, and you’ll have peace of mind knowing, if your needs change, the life care community can offer convenient services on the same campus so you may remain near friends.

*The Life Care guarantee is subject to the terms of the life care contract.

**This information is not intended to provide, and should not be relied on for, tax advice. You should consult your own tax, legal and accounting advisors.