If you are nearing retirement age, you may be wondering what your options are for aging in place. One option that is growing in popularity is continuing care retirement communities (CCRCs). CCRCs offer a variety of services and amenities, including independent living, assisted living, and nursing care. They can be a great option for those who want to stay in one location as they age and don’t want to have to worry about moving or finding new healthcare providers later on. In this guide, we will discuss the benefits of CCRCs and why more and more people are choosing them as their preferred way to retire.
What Are Continuing Care Retirement Communities (CCRCs)
Continuing care retirement homes (CCRIs) are large compounds that combine a variety of long-term care services so that residents may choose from any housing and LTC option according to their health and mobility needs. Life care communities are another name for these facilities.
All of the fundamental housing arrangements are represented on a large campus. Some residents live quite independently in secluded housing. Residents who require more assistance live in assisted living facilities. Residents who need expert nursing care may go to skilled nursing homes.
Transitioning With Age
While CCRCs are pricey, they provide long-term leases that guarantee lifelong care and lodging. Residents may transfer between facilities within the community as they get older and their medical requirements change.
A variety of living settings are provided to residents, ranging from single-family houses to large and tiny flats to fully equipped one-room units in nursing homes. Residents may even acquire their very own living space in some CCRCs.
CCRCs Are Expensive
CCRCs are more expensive than the other housing alternatives we’ve discussed, and they’re beyond the reach of individuals with low to moderate incomes and assets. To join, a person must be able to pay both an entrance fee and monthly fees.
There may also be costs associated with various services, such as long-term skilled nursing care at a daily rate.
Requirements To Join
Membership may be denied at certain CCRCs even to those who can afford it. The majority of these facilities demand a medical examination as part of the application procedure to determine the applicant’s physical and mental health. Based on the findings, the right to membership is reserved by other CCRCs.
CCRCs may be associated with specific ethnic or spiritual organizations, and some demand members to be eligible for both Medicare Part A and Part B.
How To Pay For CCRCs At A Fraction Of The Cost
A long-term care annuity is a hybrid annuity that is set up to assist in paying for Continuing Care Retirement Communities without causing retirement funds to be depleted. To create a tax-free long-Term Care Insurance benefit, an LTC annuity doubles (200%) or triples (300%) the investment (based on medical records). If there is money in the annuity, it passes along a death benefit to beneficiaries.
If you don’t have a lump sum of money lying around, another great option is a long-term care life insurance policy (LTCi). In simple terms, these policies are designed specifically for long-term care and allow the insured to access the life insurance’s death benefit while alive to pay for LTC costs. Applicants can pay a fixed premium monthly or annually instead of a one-time deposit.