Understanding The Life Care Concept

There are several reasons why older adults consider a life care retirement community. While several want to eliminate any burden on their children, or to have a desire to maintain the lifestyle that they are accustomed to living, many consider it for protection of their assets and future needs.

As we continue to see our life expectancy increase, we are faced with the possible dilemma that our retirement funds, that we worked so hard to accumulate, may not out last our life due to the many economic pressures that frequently accompany the aging process. Nursing Home or Skilled Nursing Care can easily cost between $65,000 to $98,000 per year and assisted living can cost more than $45,000 annually. With these types of expenses, people are seeking alternatives to protect their assets.

One very popular alternative is the availability of life care retirement communities, sometimes known as Continuing Care Retirement Communities (CCRC). It is important to note that there are two common types of retirement communities available. Some agreements are based on a "fee-for-service" structure which means you pay the per diem rate (private pay rate) for the level of care that you are utilizing at the time. Though the entrance fees and monthly maintenance fees may be lower, you will still be faced with the possibility of depleting your assets because of the high cost in a nursing home facility. Those who have depleted their assets, typically go on Medical Assistance, a federally subsidized program.

The most popular type or style of a life care community, for which Riddle Village is, offers a form of insurance designed to protect residents' assets yet provides them with the security of having the availability of care when needed. This type of community is actually licensed by the Pennsylvania Department of insurance and provides an agreement that simply says that your monthly maintenance fees are typically higher due to the incorporation of the medical expense, this becomes a very attractive or popular option to seniors since they are permitted by the IRS to deduct this medical portion annually from their income tax returns. Since this form of life care is regarded as a type of insurance policy involving a certain level of risk to the provider, there is an admission criteria that must be met by all applicants.

For additional information regarding the life care concept, please call our marketing staff at