A few weeks ago I wrote a two part series titled “Understanding the Impact of Long-Term Care Insurance in CCRCs.” One particular point of focus was on those retirement communities that offer a type A contract, sometimes referred to as “full life care,” and whether or not there is a need for a resident of such a community to own private long-term care insurance. I pointed a few reasons why it could make sense for a prospective resident of a Type-A community to maintain long-term care insurance even though it is generally assumed that coverage is not needed for those who enter into a Type A contract with a CCRC.

I shared the post with some of the groups I belong to on LinkedIn and received a couple of very good comments, which point to yet another reason why it could sense for prospective residents of full life care retirement communities to maintain coverage. (Thanks Richard and Lori!)

Here are the comments:

  • “I recently met with the sales/marketing director of a local CCRC that only offers Type A contracts. At the point a resident needs assistance for cognitive or ADL, that person moves to a separate building. There are no increases of any kind, but if a resident prefers to stay in the independent living area and hire help, one can hire independent aides or use the CCRC’s aides. The expenses would be covered by the LTC policy in either case.”
  • “My parents recently moved into a CCRC facility – Type A contract. My dad has MS and utilizes a power wheelchair. Similar to what Richard states above – my parents live independently and my dad uses his LTC policy to pay for an outside aide on a part-time basis.”

As with any significant life decision it is important to explore the details. Everyone’s situation is different (and every CCRC is different) so be careful not to make assumptions. Do your research and consult with knowledgeable professionals who can help you explore decisions from different angles.

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