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What Is LifeCare®?
Understanding how LifeCare® works is key to making the best decision for you and your family as you consider senior living options. At its core, LifeCare is a way to ensure you have priority and long-term affordable access to advanced levels of care you may need in the future—and that access is made available at a predictable cost, giving you more control over your finances in retirement.
While many senior communities offer various levels of care, not all of them offer LifeCare options. In other words, residents of a monthly fee-for-service community that does not offer LifeCare may still have access to care, but they likely have to pay the market rate for those services at the time they’re provided. LifeCare allows you to plan for care with a predictable monthly fee today, avoiding skyrocketing health care in the future.
With LifeCare at Cottage Grove Place, you pay an entrance fee when you move into the community, which, depending on your contract type, may be partially refundable to you or your estate in the future. You’ll also pay a monthly fee that covers costs such as certain utilities, meals, housekeeping, laundry services and amenities. This monthly fee generally increases a small percentage each year.
There are also important tax advantages of a LifeCare plan. At Cottage Grove Place in Cedar Rapids, IA, close to 40% of the entrance fee may be deducted from your taxes during the tax year of your move-in, and 40% of the monthly fees may be deducted moving forward. This is important to review with a tax advisor or financial planner.
What does this get you? As you age and your need for support increases, you have priority access to higher levels of care, which include assisted living, memory care, short-term rehab and long-term care at a predictable monthly cost. You’ll never have to worry about where you’ll be cared for, who will take care of you or how much it will cost. It is a plan that guarantees you priority access to a continuum of care on our campus, even if you outlive your resources.
Without LifeCare, moving from independent to assisted living can as much as double your monthly expenses. (See monthly cost comparison in chart above.)
Cottage Grove Place is the only senior living community in the Cedar Rapids area to offer LifeCare.
Frequently Asked Questions
LifeCare® isn’t a luxury for only a select few. Consider this: Research says 70% of people over 65 will need long-term care. Assisted living costs in Cedar Rapids, IA, average more than $5,000/month. Long-term care for daily needs, or care for recovery after illness, injury or surgery averages $7,500/month. And suppose you live somewhere with typical market rates. In that case, you will spend thousands of dollars more monthly, plus what you currently spend on living expenses such as home maintenance, insurance premiums, property taxes, utilities, entertainment, meals and fitness memberships. A LifeCare plan at Cottage Grove Place makes solid financial sense because it consolidates or eliminates those monthly expenses and keeps costs stable, allowing you to budget for an unpredictable future more easily. And if you or a loved one ever needs long-term care, you could experience even more significant benefits.
Your long-term care insurance policy will likely work with LifeCare and pay the earned benefits directly to you. You may be eligible to receive benefits from that policy if you ever need assisted living or skilled nursing care in our retirement community. Your insurance carrier or agent can answer individual policy questions and provide the best guidance.
Cottage Grove Place residents don’t pay real estate taxes. Because we’re a LifeCare community, a portion of your entrance and monthly fees may be tax-deductible as a prepaid medical expense. We recommend discussing your situation and potential financial benefits with your tax advisor.
Cottage Grove Place offers two financial plans:
1. 50% Return-of-Capital® Plan
2. Traditional Plan
The return of capital plan ensures estate protection by providing a partial return of the entrance fee investment to your estate. The traditional plan allows for a smaller investment initially with no long-term return. Both plans provide priority access to care, with unlimited services in our Health Center at a relatively fixed rate for life.
We’d love to hear from you. Connect with our expert team and we’ll be happy to assist any way we can.