Life Care Contracts vs. Rental Retirement Communities: What’s the Best Fit for Your Retirement?
When exploring senior living communities, it’s important to consider your personal needs, preferences and priorities. But another important decision you’ll need to make is which type of contract supports your financial goals. Beyond amenities and floor plans, your contract plays a key role in how you’ll pay for housing, services and even future care.
At Westerwood, we offer both Life Care and rental options, so you have the flexibility to choose what matches your financial plan and lifestyle best. But how do you know which is actually right for your needs? Let’s take a closer look at each option to help you decide.
What is Life Care?
Life Care is a type of contract typically available at Life Plan Communities or continuing care retirement communities (CCRCs). Life Plan Communities provide residents with access to a variety of care options, all on one convenient campus. These communities often include independent living, assisted living, memory care, skilled nursing and even short-term rehabilitation or respite care.
Life Care (Type A) contracts are designed to support long-term planning with greater cost predictability. For example, in exchange for an entry fee and monthly payments, the financial benefits of Life Care include:
- More predictable and stable care costs over time
- Priority access to higher levels of care if needs change
- Protection from inflation and rising healthcare expenses
How do Life Care contracts work?
With a Life Care (Type A) contract, residents typically pay a one-time entrance fee along with a monthly service fee. In return, much of your future healthcare is provided at a predictable rate. As your needs change, you can transition to higher levels of care—such as assisted living or skilled nursing—without significant cost increases. This built-in financial structure reduces cost uncertainty, which can make it easier for many families to plan or budget.
A Life Care model may be the right fit if you:
- Want to help protect your assets over time
- Prefer predictable future monthly expenses
- Like to plan ahead for future healthcare needs
- Value the ability to remain in one community long term
What is a rental retirement community?
A rental retirement community offers flexible living on a single campus, typically centered around independent living. Additional care services—such as assisted living, skilled nursing or short-term rehabilitation—may be available at communities like Westerwood, but are paid for separately as needed.
Rental communities are known for using a pay-as-you-go pricing model and offer several financial benefits for retirees, including:
- Lower upfront cost and financial barrier to entry
- Greater flexibility in lifestyle and living arrangements
- Paying only for care and services when they’re needed
How do rental community contracts work?
Residents typically pay a monthly fee that covers housing and select amenities, without the need for a large upfront entrance fee. This option provides residents with more flexibility in how and when they pay for care. A rental contract may be right if you:
- Want to avoid the cost of a large upfront entrance fee
- Prefer flexibility in housing and financial commitments
- Don’t anticipate needing higher levels of care
- Are comfortable with variable future care costs
What contracts are available at Westerwood?
Most communities offer one contract option, but at Westerwood you have three to choose from, which means there’s more flexibility to find what brings you peace of mind.
Senior living contracts
- Life Care (Type A). An upfront entrance fee plus a predictable monthly fee that includes future care.
- Life Choice Agreement (Type B). A unique contract option with a lower upfront cost than Life Care and access to care at discounted rates.
- Rental (Type C). No entrance fee, with a monthly rental fee and pay-as-you-go care if needed.
Our Type B contract is different because it offers a lower entrance fee, discounted future healthcare costs and your regular independent living monthly fee. Each year, you’ll also receive up to 10 days in our rehabilitation center or short-term assisted living, if needed.
Check out our financial information and contracts page to learn more about our contract options, as well as our unique programs and discounts that help residents save money.
Talk to a senior living expert about your needs
If you’re searching for affordable senior living options in Columbus and have more questions about contract types or care options, we’re here for you. To learn more about Life Care vs. rental living at Westerwood—or to discuss what’s right for you—feel free to give our knowledgeable team a call at 614-890-8282.
