The variations on 5 basic contract types for CCRCs are almost infinite. Most contracts require advance deposits in return for 20 to 30 years of service. You should use an attorney with CCRC experience to review contracts, and you need to obtain a reliable credit assessment of the responsible corporation before signing any contract.

Type A (lifecare) contract:  pre-pays health-related services. The initial deposit and monthly service fees are higher. They maximize residential services and keep monthly fee steady when you use assisted or skilled nursing care. Your expenses are more predictable, but you may pay for more care than you use.

Type B (modified residency) contract:  partially pre-pays health-related services. Entry and monthly fees are lower. When you transfer to care, you continue paying the residential fees, but get a discount from the market rate for care fees.

Type C (fee-for-service) contract:  has a low entry fee and/or monthly fee. But assisted and skilled nursing care reflect the full market rate. The risk is unlimited exposure to long-term care costs, but it avoids overpaying for care.

Rental contract:  has no deposit but has a high monthly fee. A month-to-month option may suit a seasonal resident. There’s no priority access to care and you pay full market rate when you use it. It avoids a deposit, but costs more over time, especially for couples.

Equity/Co-op: In the equity case residents own their home, but still pay a monthly fee for services and maintenance. In the co-op model residents buy shares of a corporation. Both provide healthcare services at the full market rate and cause transfer headaches for heirs.

Leveling the Playing Field: CCRC Rating and Ranking is a place to start learning how to evaluate CCRCs and the myLifeSite can help find and compare some local options.