As you explore senior living options, you might wonder why retirement communities don’t all have the same payment structure. The simple answer is that they don’t all offer the same services, amenities, or care types. Senior living options and costs also vary by geographic location.
This leads us to the topic of entrance fees for retirement communities. What are they? What do they mean for the incoming resident? Are there benefits to paying this type of upfront fee? Learn more about entrance fees at different types of senior living communities below.
What is a retirement community entrance fee?
Just as it sounds, an entrance fee is an upfront payment made by an incoming resident to a senior living community that secures a home, plus all community services and amenities within that community.
Most communities that require entrance fees are considered either Type A (LifeCare), Type B (Modified), or Type C (Fee for Service). The Winsberg is a Life Plan Community (also known as a Continuing Care Retirement Community or CCRC) with a Type B contract. We do require an entrance fee payment, however, unlike a community that offers a Type A contract, we do not require you to pay for services you might never need.
What does an entrance fee cover?
Entrance fees cover the cost of health services in a continuum of care. That way, when an older adult moves into the community as an independent living resident but may need to transition to levels of care, including assisted living or memory care, it will be a seamless transition.
Entrance fees vary depending on contract type, the residence selected, and the number of people occupying the residence. For example, an entrance fee for one individual living in a one-bedroom apartment will be less than a couple moving into a two-bedroom apartment.
Under a Type B contract, like we offer at The Winsberg, your entrance fee and monthly fee could be lower than with a Type A LifeCare contract. You’ll also secure future healthcare at a predetermined discount off market rates and won’t have to pay for services you don’t need.
Are there benefits to paying an entrance fee?
It may seem like a big ask before you officially move into a new community, but there indeed are benefits to making an entrance fee payment. These include:
- Peace of mind and predictability that you’ll have priority access to care and, depending on the contract type, you won’t be paying the market rate for care.
- Commitment to your residency, meaning you’ll likely have the same neighbors for a long period of time.
- A lesser month-to-month fee when compared to most rental senior living communities.
- The promise of care services and community upkeep. When a community receives your payment, they do their best to invest that money back into upgrades and additional services for residents. The Winsberg is a non-profit so you can rest assured that all funds are reinvested in the community.
Are entrance fees refundable?
Every retirement community is different. When making a decision about senior living, you’ll be informed if your entrance fee is non-refundable, partially refundable, or fully refundable. Non-refundable entrance fees usually apply to lower-end entrance payments. Refundable entrance fees are usually a higher cost, with most luxury communities offering several different contracts, ranging from 90% – 0% of the entrance fee that would be refunded to the resident or their estate.
At The Winsberg, a portion of your entrance fee may be refundable. Learn more about the security of a Type B Life Plan Community like ours here.
Ready to move into a confident retirement lifestyle?
In retirement, you’re faced with decisions about where to live, what to spend, and what makes the most sense for your future needs. Call us today at 561-658-1237 to learn more about The Winsberg at Green Cay and our limited-time, pre-construction pricing.