LifeCare Contracts Defined at Friendship Village Tempe

Let’s Clarify the Awesome Value and Benefits of Life Care.

What is Life Care? Simply put, it’s a financial contract between a CCRC1 (also known as a Life Care Community) and a resident of that community. For the resident, it’s a comprehensive plan that provides a residence for independent living, plus access to long-term care at stable, predictable rates.

That’s the tip of the Life Care iceberg. There’s a lot more to learn about CCRC Life Care contracts. So let’s dig into the details, and answer common questions, including:

four seniors standing outside with two dogs

  • Why is ​Life Care​ a good idea?
  • What are the specific benefits of ​Life Care​?
  • Are there ​Life Care contract​ options?
  • What is the ​fee structure​?
  • How does ​Life Care​ compare to other ​CCRC contract types​?

Why is ​Life Care​ a good idea?
The fact is, about 70% of seniors 65 or older will need to spend an average of three years in some type of out-of-home long-term care facility​2 — assisted living, skilled nursing or memory care. Medicare and long-term care insurance (LTC) can help, but both are safety nets with holes. Most LTC insurance plans limit how much and for how long they’ll pay out, which can lead to financial burdens. And you’ll likely be restricted in options of where you receive care, which will lead to a stressful situation if you dislike or lack confidence in the facility you’re sent to for care.

Life Care​ to the rescue​. Choosing a Life Plan Community (also known as a CCRC) in the ​Phoenix area that offers Life Care will allow you to continue living with confidence. How? A ​Life Care contract​ like Friendship Village Tempe’s secures your future health care needs at our state-of-the-art health care center, for life.

What are the specific benefits of the ​Life Care contract​?

Financial protection​. A highly refundable entrance fee and predictable monthly expenses shield you from the ever-rising costs of long-term care outside the ​CCRC​ you choose. It’s like putting your nest egg in an ironclad shell.

High-quality care​. If you ever need it, you’ll have access to ​assisted living​, skilled nursing , ​memory support, and rehab services at your CCRC’s health care center, close to your friends and spouse.

Significant value​. A ​Life Care contract​ covers so many of life’s expenses, including home maintenance and repairs, landscaping, utilities, many social events, as well as the long-term care costs mentioned above. Many people are delighted to find that moving into a CCRC with Life Care​ is more affordable than staying in their home.

Sure-thing ​tax​ advantage​. No more property taxes once you move to a ​CCRC with Life Care​.

Potential ​tax​ advantage​. A portion of your community fees may be ​tax-deductible​, as several rulings have qualified a ​CCRC’s entrance fee​ as a prepaid medical expense. Check with your tax advisor.senior woman drawing

Are there ​Life Care contract​ options?
Yes. A good CCRC should work with you to make their ​Life Care contracts​ fit your needs and financial goals. For instance, Friendship Village Tempe offers two distinct contracts:

  1. The Traditional Plan has the least capital investment with a lower entrance fee.
  2. The Return-of-Capital® Plan works harder to preserve your estate, with a larger entrance fee but with a guaranteed 80% refund no matter how long you live at Friendship Village or your level of care needs.

100% Satisfaction Guarantee​. There’s no question, making the move to a Life Plan Community is a big step — a decision that should come with no regrets. At Friendship Village Tempe, our Life Care contracts include a 100% Satisfaction Guarantee. If within one year of residing at our community you aren’t completely satisfied, we’ll refund your full entrance fee.

What is the fee structure of a ​Life Care contract​?

There are two fees associated with a ​Life Care contract​:
At Friendship Village Tempe, your one-time entrance fee and predictable monthly fee ensure you have everything you need for a secure retirement. Under this ​fee structure​, you’re entitled to a well-maintained residence in the floor plan of your choice, use of all community amenities, an open invitation to resident social, cultural and entertainment events, and access to the health care center for long-term care for as long as you need it.

How does ​Life Care​ compare to other ​CCRC contract types​?

There are several senior living options in the ​Phoenix, Arizona​ area. Each type differs in its amenities, contracts and costs, levels of care and value. Here’s a glossary for quick comparison:

  • Life Care​ at Friendship Village Tempe​: As a Life Plan Community (also known as a CCRC), we offer several independent living floor plan choices in a fun-loving social setting. The community includes a wide range of services and amenities, and high levels of personal hospitality. Residency also includes access to a full continuum of care at our state-of-the-art health care center for as long as you need it at below-market costs.
  • Modified Fee-for-Service Contract​: This contract offers services for a predetermined length of time or discounted from market rates. When that time has expired, other services can be obtained, but for higher monthly fees.
  • Fee-for-Service Contract​: Costs for health care services are typically charged at market rates on an as-needed basis. In a ​CCRC contract​, there may be an entrance fee, which may or may not be refundable; costs are unpredictable as national health care rates rise.
  • Rental communities​: Just as it sounds. There’s no entrance fee; instead, residents pay monthly for a residence and use of the community’s amenities. If on-site health care is available, typically residents would pay the full market price for that care.

In ​Tempe​, ​Life Care​ is the gold standard of long-term retirement plans. It protects your estate and provides a fulfilling lifestyle free from worry about the future. If you ever need long-term care, you already know where and by whom it will be provided, and how much it will cost.

Hopefully, this gives you the lay of the land. There’s a lot to consider, and no doubt you have questions. If you’d like to speak with someone about ​Life Care contract​ options at Friendship Village Tempe, fill out the form below. We’ll be in touch shortly.

Our Senior Living Community is a Life Care Community in Tempe, Arizona

In summary, Life Care is a comprehensive long-term care plan with surprising financial benefits. Life Care ensures access to assisted livingskilled nursing and memory care — if you ever need it, for as long as you need it. If you’d like to speak with someone about ​Life Care contract​ options at Friendship Village Tempe, contact us. We’ll be in touch shortly.

1continuing care retirement community
2​U.S. Department of Health & Human Services