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Why Life Care Is Worth the Investment

A senior man and friends enjoy a wine tasting.

Just as you’ve had choices like purchasing your current home, which direction to take your career, or how to raise your family, you also have choices in where to spend your retirement. One of those options includes Life Plan Communities with Life Care.

Learn the basics of Life Plan Communities with Life Care contracts, and find out why they offer a retirement lifestyle like no other senior living option.

What Are Life Plan Communities?

Life Plan Communities, also known as continuing care retirement communities/CCRCs, offer priority access to a continuum of care that typically includes independent living, assisted living, memory care, rehabilitation and skilled nursing. Each level of living is on the same campus, and every resident is provided with personalized care that matches their needs, comfort level and personal preferences.

People typically move in as independent living residents, make meaningful connections with their neighbors and community staff, enjoy the abundant services and amenities, and rely on a safety net of care that evolves with them as they age, if they need it.

What Is a Life Care Contract?

Also known as a Type A contract, Life Care guarantees you unlimited priority access to a continuum of senior care and the opportunity to protect yourself from the constantly rising costs of long-term care. A portion of your one-time entrance fee secures your residence and priority access to higher levels of care with predictable and below-market rates, and a predictable monthly fee that provides maintenance-free living and access to incredible services and amenities.

This means that future costs of living in the community won’t significantly rise if your health care needs change over time, and you’ll always be able to enjoy the wonderful lifestyle you’ve become accustomed to in senior living. It’s important to note that while all Life Plan Communities offer a continuum of health, they don’t always offer Life Care.

At Cypress Village, we also offer senior living contract options that refund a portion of your entrance fee to you or your heirs, preserving your assets and ensuring your legacy. Our Flex Your Future program allows you to embrace the freedom of independent living by tailoring your senior living costs to suit your budget.

You can customize your entrance fee by selecting your residence now, with less out of pocket, and then pay the rest of your entrance fee on a flexible timeline.

Is Life Care Worth It?

According to the U.S. Department of Health and Human Services, adults age 65+ have a nearly a 70% chance of needing long-term care and support. Out-of-pocket-costs for senior care in Florida can range anywhere from around $4,000 to almost $10,000 a month, depending on the level of care you need.

The cost of senior care is also rising each year. Genworth, an industry leader on the cost of caregiving and long-term care options, found significant increases in cost of care between 2020 and 2022.

The 2022 Genworth Cost of Care Survey revealed these concerning increases in long-term care:

  • Homemaker services for seniors, like cooking, cleaning and running errands increased 10.64%.
  • In-home health services that provide “hands-on” personal care, but no medical care, increased 12.5%.
  • Adult day health care that provides social and support services in a community-based environment increased 5.41%.
  • The cost of assisted living in senior living communities increased 4.65%.
  • Skilled nursing care in a nursing home or senior living community increased 1.96% for a semiprivate room and 2.41% for a private room.

No matter the level of living you require, a Life Plan Community with Life Care can provide the high-quality health services you need to thrive throughout retirement at prices you can afford.

Four More Advantages of Choosing a Life Plan Community with Life Care

Moving to a Life Plan Community with Life Care is a great investment for right now and the future. Look at four more reasons this senior living option is right for your retirement.

1. Gain peace of mind for you and your loved ones.

If your health suddenly changes and you can no longer live in your current residence, your family never has to worry about quickly finding and paying for care. You and your family can gain peace of mind knowing your needs will always be met with a continuum of health and seamless transitions between levels of living. Plus, they won’t have to make room in their budget to help cover the cost of market rate care, if you ever need it.

2. Stay in the community you love.

Life Plan Communities offer higher levels of care on the same campus. This means you can receive high-quality care without moving to another community and away from your friends, spouse, and care team you’ve come to know. You won’t have to get used to a new community layout and staff, and you can continue enjoying your daily routine in a familiar setting.

3. Take advantage of the tax benefits.

Life Plan Communities with Life Care can provide you with valuable tax benefits. Most times, the IRS considers a portion of your entrance fee to be a prepayment for any future care needs, which could make it tax-deductible. A portion of your monthly fees may also be deductible. Not only does this give you some extra money to put back into your pocket, but it can make the cost of Life Care seem a little less.

This is especially true in Florida, where there isn’t a state income tax on retirement income like Social Security benefits, IRAs, pensions, 401(k)s. Be sure to talk to a tax professional to see how Life Care could affect your taxes.

4. Unlock an incredible lifestyle with one monthly fee.

From invigorating wellness programs, exciting community events and outings, and lifelong learning opportunities to a fully equipped fitness center, heated pool, creative arts center, maintenance-free residence, housekeeping, and so much more — everything you desire for an enriched and fulfilling retirement is just steps from your front door.

Life Plan Communities with Life Care contracts are incredible stewards of your money. While part of your monthly fee is used to cover day-to-day operations, a portion of your entrance fee is used to invest in new amenities and capital projects, like renovations and new construction.

Are You Ready to Step on the Path to Your Dream Retirement?

Cypress Village is a Life Plan Community in Jacksonville, FL, that can help you achieve your dream retirement with our financial options. To learn more about Life Care, our Flex Your Freedom program, or to schedule a tour of our community, contact our senior living representatives online. We’re always happy to help!