The Differences Between a Life Plan Community and a Rental Community

When you don’t have to worry about being close to work or where you kids will go to school, you suddenly have the freedom to live where you want. If you’re like most seniors, you’re probably exploring ways to trade in the responsibilities of homeownership for the freedom of a maintenance-free retirement community. 

Two of the most popular options are a rental retirement community and a Life Plan Community. This blog post will cover the important differences between the two that you need to know. 

Rental Retirement Community

A rental community is a good option if you’re able to live on your own, without the need for higher levels of care. But there’s more to consider than what you’d be paying today. Here’s some general information about rental communities:

• Fees: Residents sign a lease for an agreed-upon length of time — anywhere from month-to-month to a year. While there may not be an entrance fee, there will likely be a security deposit, which may or may not be refundable. Your monthly fee is determined by the size of your residence, the level of care you need, and the amenities you use. 
• Lifestyle: A variety of services and amenities will be built into your monthly payments. While they will vary by community, these can include meals, housekeeping, maintenance, transportation, and on-site events and activities. In general, rental communities offer more a la carte services than Life Plan Communities. Be sure to review the rental agreement to see which services are included and which will cost extra.
• Care: Most communities provide independent living, but some may also offer higher levels of care, including assisted living services — either in your home or in a different area of the community — and memory care. However, for these higher levels of care, you may have to pay full market rates. If care isn’t available at the rental community, you’ll have to move to get the care you need.

Life Plan Community

Also known as a Continuing Care Retirement Community (CCRC), a Life Plan Community is an ideal way to continue your active lifestyle. Life Plan Communities combine independent living with access to a continuum of care usually provided on-site or nearby. That way you don’t have to worry about making a move during a health emergency. Other features include:

• Fees: Life Plan Communities require an initial entrance fee plus a monthly fee. This contract structure offers tax advantages that can save you money over time. (Consult with your tax advisor.) The entrance fee secures lower rates for any future care you may need. Plus, at Westminster, there are several options, including 90% Return-of-Capital^® Plan, 50% Return-of-Capital plan and a Stand Plan where a portion of your entrance fee could be refundable to you or your estate.
• Lifestyle: Your monthly fee typically covers the cost of utilities, housekeeping, maintenance, choice of meal plans, activities, programs, classes, on-site cultural events, transportation, and the use of all community amenities.
• Care: With the upfront investment of an entrance fee, a buy-in option may look more expensive. However, the plan for lower-cost, predictably priced long-term care — including assisted living, memory care, skilled nursing and short-term rehab — adds value and peace of mind that’s hard to put a price tag on.

A Better Way to Care for Your Future

When it comes to choosing between a Life Plan Community and a rental community, the biggest factor is whether or not you think you’ll need future care. Before you decide, consider that the U.S. Department of Health and Human Services reports that 70% of seniors 65 and older will need some type of long-term care with an average stay of approximately three years. And even if you don’t need care, what about your spouse? 

At Westminster, our Life Care contract provides you with unlimited days of quality, long-term care, if ever needed, at essentially the same monthly fee. Plus, we offer a 100% Satisfaction Guarantee. That means if, during your first 12 months at Westminster, you’re not completely satisfied, 100% of your entrance fee will be returned to you.
You can schedule a time to visit our community by contacting us here. Or see how one of our one-bedroom floor plans can open up a world of possibilities and provide you with a more secure future.