Finding the Right Life Plan Community Option for Your Financial Situation
One of the most significant benefits of living at a Life Plan Community, or Continuing Care Retirement Community (CCRC), is the many contract choices and options available to residents. When considering a move to a Life Plan Community, it’s important to remember that everyone’s financial situation is different. The contract that works best for you will likely be different from that of your neighbor—and that’s perfectly fine—because you’ll both still enjoy the benefits of the Life Plan Community lifestyle, today and in the future.
Offering varying contract options is one of the many ways that Fountaingate Gardens stands out from other senior living options, allowing multiple routes to the lifestyle and assurances provided by a Life Plan Community. Among its contract options, Fountaingate Gardens offers both Modified and Life Care plans with varying refundability options—arrangements that work for every personal financial situation.
Understanding Life Plan Community Contract Structure
When a resident enters a Life Plan Community like Fountaingate Gardens, they typically pay a one-time entrance fee and ongoing monthly service fees. The entrance fee is an investment that covers capital costs and/or future healthcare benefits, while the monthly service fee covers the cost of services such as utilities, housekeeping, interior and exterior maintenance, dining, and on-campus activities.
The entrance and monthly service fees a resident pays depend on the type of contract selected. These fees also determine the duration and cost of healthcare services a resident may receive. According to industry experts, there are essentially three main contract types offered by Life Plan Communities, each with different approaches to future care coverage.
The Modified Contract: “Pay as You Go” Flexibility
The Modified contract, also known as a Type B or Modified Fee-For-Service contract, offers the opportunity to “pay as you go” for healthcare services. This program is particularly appealing for residents seeking all the benefits of life at Fountaingate Gardens while spending less upfront and monthly compared to other contract options.
How the Modified Contract Works
With a Modified contract, residents do not pre-pay for higher levels of care they may not need. Instead, should the need for assisted living or skilled nursing care arise, they would pay the going rate for services as incurred. This approach provides several key advantages:
Lower Initial Investment
- Reduced entrance fee compared to Life Care contracts
- Lower monthly service fees for independent living
- Preserves more of your assets for other investments or estate planning
Flexible Healthcare Approach
- Pay only for care services when and if you need them
- No upfront payment for care you may never require
- Some contracts offer discounted rates for a specific number of days before market rates apply
Included Benefits at Fountaingate Gardens
- 60 cumulative days each of assisted living and skilled nursing care at no additional charge
- Access to Fay J. Lindner Assisted Living community if needed
- Priority placement at Gurwin Nursing and Rehabilitation Center
- All independent living amenities and services
When the Modified Contract Might Be Right for You
The Modified contract works particularly well in three common scenarios:
Scenario 1: You Already Have Long-Term Care Insurance
If you already have a long-term care insurance policy, you purchased it knowing it would cover future changes in your health and help offset care expenses. In this case, a Life Care contract—which provides discounted healthcare costs when moving through the continuum—may not be the optimal choice for your personal financial situation.
The Modified contract allows you to:
- Keep your existing long-term care coverage
- Take advantage of lower monthly and upfront costs
- Avoid paying twice for similar coverage
- Enjoy the full Fountaingate Gardens lifestyle
Scenario 2: You Are in Excellent Health
If you’re generally healthy and live an active lifestyle, and you can reasonably expect these conditions to continue, you may prefer not to pay now for care you may never need. This is where the Modified contract shines by allowing you to pay only for what you want and need today: the services and amenities at Fountaingate Gardens.
Even with this approach, the Modified contract includes 60 cumulative days each of assisted living and skilled nursing care to help you recover from temporary health situations—without any increase to your monthly fee.
Scenario 3: You Want to Preserve Your Investment Portfolio
If you’ve been saving and investing for decades and want to keep as many assets as possible in interest-bearing accounts, the Modified contract supports this strategy. You’ll pay a lower upfront entrance fee compared to a Life Care contract, which will:
- Preserve your estate and enable it to keep growing
- Maintain liquidity for other opportunities
- Keep funds available if care costs arise in the future
- Provide flexibility in your financial planning
What’s Included Regardless of Contract Type
Regardless of whether you choose a Modified or Life Care contract, every Fountaingate Gardens resident enjoys access to:
Comprehensive Services
- Housekeeping and interior/exterior maintenance
- Multiple dining venues and meal plans
- 24-hour security and emergency call system
- Landscaping and grounds maintenance
- Utilities, WiFi, and trash removal
- Fitness classes and wellness programs
Premium Amenities
- State-of-the-art wellness center
- All-seasons swimming pool
- Multiple dining venues
- Fitness classrooms and spa services
- Game room, library, and salon
- Public event rooms and gathering spaces
Healthcare Access
- Priority access to on-campus healthcare services
- Seamless transitions between care levels if needed
- Coordination with the renowned Gurwin Healthcare System
- Peace of mind knowing care is available when needed
Understanding the Value of Choice
Research shows that Modified contracts provide an appealing balance between affordability and access to care services, making them particularly attractive for residents who value flexibility and want to maintain more control over their healthcare expenses.
Many residents appreciate having some long-term care included in their contract but desire more financial flexibility than a comprehensive Life Care contract offers. For these residents, the Modified contract with lower entrance and monthly fees provides an excellent fit.
Making the Right Decision for Your Situation
When evaluating contract options, it’s essential to consider:
Your Current Health Status
- Are you in good health with an active lifestyle?
- Do you have family history factors to consider?
- What does your physician think about your long-term health outlook?
Your Financial Preferences
- Do you prefer lower upfront costs with pay-as-you-go flexibility?
- Are you comfortable with some financial uncertainty about future care costs?
- Do you want to preserve assets for other purposes?
Your Insurance Coverage
- Do you already have long-term care insurance?
- How would different contract types work with your existing coverage?
- Have you consulted with your insurance agent about coordination of benefits?
Professional Guidance Recommended
Regardless of your personal financial situation, it’s always best to consult with your financial and tax advisors before making a life-changing decision like moving to a Life Plan Community. These professionals can help you understand how different contract types might affect your overall financial picture and tax situation.
Additionally, some Life Plan Communities offer tax benefits that residents don’t always realize they qualify for, making professional guidance even more valuable.
The Fountaingate Gardens Commitment to Choice
At Fountaingate Gardens, we understand the value of choice and the importance of allowing families to select the best path forward based on their unique financial situation. Providing a variety of contract options, including our Modified contract, ensures flexibility and peace of mind as you move toward your new lifestyle.
Our approach recognizes that there’s no one-size-fits-all solution when it comes to retirement planning. Whether you prefer the comprehensive coverage of a Life Care contract or the flexibility of a Modified contract, you’ll enjoy the same exceptional lifestyle and community at Fountaingate Gardens.
Ready to explore which contract option might be right for your situation? We encourage you to speak with one of our knowledgeable Lifestyle Consultants who can explain the full scope of options available to you and help you understand how each might work with your specific financial circumstances.
Contact us to schedule a personal consultation and tour. Our team will work with you to find the contract option that provides the perfect balance of lifestyle, security, and financial comfort for your unique situation.
