Benefits of a Life Care Community

Quick Summary: Older adults and their families looking for senior living in Memphis, TN, will come across terms like continuing care retirement community (CCRC), life plan community, and life care community. How do these communities differ from one another and which is the right choice? This guide from Kirby Pines provides an overview of the different types of CCRC contracts, the benefits of a Type A Life Care Contract, and the differences in the healthcare coverage offered by each CCRC contract type. 

Disclaimer: This article is intended for general information only. Tax laws change frequently, and individual circumstances may vary. Always consult with qualified tax and financial professionals before making decisions based on this information.

If you’re searching for senior living options, you’ve probably seen terms like continuing care retirement community (CCRC), life plan community, and life care community. 

These may all seem similar. Are these terms just different ways to refer to the same thing? One community might say “tomato,” and one might say “to-mah-to.” But don’t call the whole thing off just yet. 

Life care communities like Kirby Pines in Memphis, TN, are a specific type of continuing care retirement community (CCRC). Life care communities offer a specific type of contract–Type A–that offers guaranteed access to future health care in exchange for an entrance fee and a monthly fee. 

How are these types of communities similar? How do they differ? And what type of CCRC contract is right for you and your family? At Kirby Pines, we help Memphis-area seniors answer these questions every day. We’ve put together this guide to break down the differences between each contract type and explain how they differ from a fee-for-service senior living community. 

What Are the Different Types of Continuing Care Retirement Communities?

A continuing care retirement community provides residents the option to age in place within the same senior living community throughout different phases of aging.

CCRCs offer a full continuum of care for older adults, with multiple levels of living in one location:

Core Levels of Senior Living

• Independent living: Designed for active, self-sufficient seniors who do not need help with activities of daily living, such as bathing, dressing, feeding, and medication management. 
• Assisted living: Designed for seniors who are still very capable mentally but may need additional assistance with activities of daily living. 
• Memory care: Provides specialized, secure support for seniors with Alzheimer’s or other forms of dementia and cognitive decline. 
• Skilled nursing care: Provides 24/7 support for medical needs. 
• Senior rehabilitation: Provides therapeutic support for older adults recovering from an illness or injury. 
• Short-term respite care: Provides temporary short-term care coverage for emergencies and caregiver relief. 

Kirby Pines offers all of these levels of living on our 60-acre campus. 

In a CCRC, residents can start in one level of living and later seamlessly transition into another. For example, if an independent living resident suddenly needed more help with daily activities, they could transition into assisted living. If they eventually require more medical care, they can transition to skilled nursing. Residents at a CCRC don’t have to leave the community they call home if their needs change over time, offering a sense of stability and familiarity. 

What is A Life Care Community?

Life care communities like Kirby Pines are a type of CCRC that offers a Type A contract with the most extensive care coverage. 

There are three main types of CCRC contracts. Nearly every continuing care retirement community will offer one of these contracts. The difference between contract types boils down to the amount of financial risk the community absorbs. Generally, the more healthcare coverage that is offered through the contract, the greater the potential tax deduction. 

Individual circumstances may vary. Consult with a qualified tax and/or financial professional for more information regarding your specific situation. 

Most CCRCs will charge residents two types of fees: an entrance fee and a monthly fee. The entrance fee is typically a one-time fee charged to secure the contract. Monthly fees typically cover ongoing maintenance and service for amenities, meals, and utilities. At Kirby Pines, the monthly fee covers electricity, water, heating, air conditioning, sewer, trash removal, and snow removal. 

Types of CCRC Contracts

• Type A – Extensive LifeCare: 
  • Offers the most comprehensive coverage of all CCRC contract types. 
  • Residents pay a one-time entrance fee and a stable monthly fee. 
  • All-inclusive, covering housing, services, and healthcare at no additional cost. 
  • Predictable costs, monthly fees remain the same even if the resident’s care needs change. 
• Type B – Modified: 
  • Offers a more limited set of services. Covers a specific amount of long-term care at no extra cost, but once exhausted, care is charged at a per-diem rate (often discounted compared to the market rate). 
  • Additional services are charged at a monthly rate. 
  • Typically considered the mid-range level of entrance fees. A partial tax deduction may apply. 
• Type C – Fee-for-Service: 
  • Healthcare services are billed at the market rate when needed. 
  • Places more long-term financial risk on the resident—as healthcare costs rise, extensive care may cost more.  
  • Typically the lowest level of entrance fees. 

Some CCRCs offer Type D, a rental contract, and Type E, which is an equity agreement to purchase a share of your unit in place of an entry fee, according to AARP. While Type E allows for potential real estate appreciation, the resident is still responsible for monthly service fees, in addition to any health care costs they may incur later.

What Are the Benefits of A Life Care Community?

Kirby Pines offers residents a Type A Life Care contract, which guarantees residents access to every level of health care available on campus for the rest of their lives. This offers peace of mind and flexibility at every stage of aging. You can enjoy the maintenance-free, worry-free lifestyle of independent living today, with the reassurance of a solid plan in place for the future. 

Here are some of the other benefits that a life care community like Kirby Pines offers:

• Priority access: Kirby Pines residents are first in line for skilled nursing care and short-term senior rehabilitation. That means if you have a sudden medical emergency, you won’t need to scramble looking for providers. For more information on the outstanding care provided at Kirby Pines’ Ready for Rehab Center, read our blog on questions to ask when choosing senior rehabilitation providers.

• Couples stay connected: Because Kirby Pines offers all levels of care on one campus, couples never have to separate if care needs diverge. One partner can receive memory care or skilled nursing while the other continues in independent living, remaining steps apart and surrounded by the same friends and staff.
• Take full advantage of today: Kirby Pines offers a 60-acre campus with an indoor pool and spa, a 350-seat performing arts theater, a fitness center with personal trainers, a stocked fishing lake, miles of walking trails, and a wide range of activities, resident-led clubs, and engaging programs. Adults over 55 can enjoy all of this right now and lead a more fulfilling, relaxing lifestyle. 

Is A Life Care Community Right For You?

While all life care communities are CCRCs, not all CCRCs are life care communities. Think of it like “all bourbons are whiskey, but not all whiskey is bourbon.” 

CCRCs offer the same flexibility and future stability with multiple levels of care on one campus for an easy transition if you need more care. The difference is in the fee structure and costs. In a Type A life care community, you’re guaranteed priority access to care when you need it most. While you may pay a higher entrance fee, you’ll be paying for healthcare at today’s rates vs. the market rate at the time care is provided. You’re trading a larger, predictable payment today for protection against unpredictable and potentially higher healthcare costs down the road. 

To better understand your options and determine which type of CCRC is best for you, Kirby Pines offers a free financial planning tool. By answering a few simple questions, you can get a helpful estimate of your senior living budget in minutes. 

So is a life care community right for you? If your ideal senior living option is making the most of Kirby Pines today while also securing a solid plan for tomorrow, the answer is likely yes. 

The best way to determine if our campus is the right place for your next home is seeing it for yourself. Contact our team today to schedule a personal tour. 

Frequently Asked Questions

Q: What is a life care community?

A: Life care communities like Kirby Pines in Memphis, TN, are a type of continuing care retirement community (CCRC) that offers a Type A contract, providing residents with lifetime access to every level of care on campus at a monthly fee that stays largely stable regardless of how their health needs change.

Q: Is a life plan community the same as a CCRC? 

A: Essentially, yes. “life plan community” is a newer term for continuing care retirement communities (CCRC). Both describe a campus offering a full continuum of care, from independent living through skilled nursing. The meaningful difference between individual life plan communities is not the label but the contract type—Type A LifeCare, Type B Modified, or Type C Fee-for-Service.

Q: How is a life care community different from a fee-for-service senior living community?

A: In a Type C Fee-for-Service community, you have access to on-site care while paying the prevailing market rate when you use it.

Under a Type A LifeCare contract like the one at Kirby Pines, that future care is pre-funded through your entrance fee and monthly fee, so a move to assisted living or skilled nursing does not substantially change what you pay each month.