What is a Modified Life Care Agreement?

 

12829091_995172240550079_221646678455228446_o (1)A fulfilling retirement community lifestyle is financially in reach. Many communities, such as Kendal-Crosslands, offer flexible financial options, contracts and agreements to fit your unique financial needs, allowing you to plan for your future and get the most out of your retirement.

Kendal-Crosslands offers two types of Life Care Agreements: Traditional Life Care and Modified Life Care. Regardless of which agreement you select, both agreements give you access to the finest healthcare services in our continuum of care, with predictable monthly fees, exceptional services and amenities, and three entrance fee refund plans from which to choose.

Modified Life Care Agreement

If you already have long-term care insurance, consider the Modified Life Care Agreement. This agreement works in conjunction with the insurance you already have, and gives you a significant discount on your initial entrance fee, unlike the Traditional Life Care Agreement. The Traditional Agreement is intended for those who do not already have long-term care insurance.

The benefit of a Modified Life Care Agreement is that if you have already paid for long-term care insurance, you aren’t paying again for the same coverage in the Traditional Agreement.

After you pay the initial entrance fee, a consistent monthly service fee will cover costs of your new apartment home or cottage, meals, amenities, housekeeping and additional services. The monthly fee is determined based on the size of the apartment home or cottage, and the number of residents who will live there.

If you ever need the services provided at the Health Center at Kendal-Crosslands, the cost of the healthcare services is a per diem rate. When you move to the Health Center, you no longer pay the monthly service fee, and instead your long-term care insurance initiates to help cover the per diem rate. Residents are responsible for any difference in costs not covered by their long-term care insurance. If your spouse continues to live in Independent Living, his or her monthly fee is reduced to the one-person rate.

The per diem rate will be in effect for either three or five years, depending on which you select. Long-term care policies are usually written to have a set period of time of coverage. You’ll want to choose the period of time that matches the length of your long-term care insurance. The benefit of choosing a longer period of self-insured time is a greater reduction in the entrance fee. After the three- or five-year time limit has expired, the monthly service fee will revert to the original amount.

Refund Options

Both agreements also include three entrance fee refund options. You can select a 2% Declining Balance Plan, 50% refund plan or 90% refund plan. The decision is up to you, and only affects your initial entrance fee. The lower the refund, the lower your initial entrance fee.

There are many options to choose from when establishing your agreement, each depending on the insurance already have, and each affecting your entrance fee. With many options to choose from, you will find an option that meets your unique financial needs.

All residents, regardless of agreement or refund plan, will have access to community amenities, such as the dining rooms, library, crafting rooms, fitness and aquatic centers, and more. The cost of maintaining these amenities is covered in your monthly service fee, allowing you to utilize them whenever you choose.

Other services and amenities included in your monthly service fee are parking areas, nutritionally well-balanced meals, linen services, housekeeping, campus maintenance and repairs, groundskeeping and utilities such as water, trash removal, basic cable, internet service, and electricity.

If you want to learn more about Kendal-Crosslands Life Care Agreements, or want to talk with a retirement counselor to determine which option is best for you, please call us at 610-388-1441.