Life Care vs. Rental: Which is the Right Choice for You?

When it comes to choosing a senior living community, seniors face a variety of options. Two of the most common are a Type A Continuing Care Retirement Community (CCRC) with an entrance fee and life care (like The Highlands at Wyomissing®) and a rental community. While both offer a continuum of care, they operate on very different financial structures and provide distinct advantages.

The Highlands at Wyomissing is the only Type A CCRC in Berks County and offers the highest level of care for residents moving to an independent living community. The key feature of a Type A CCRC is the entrance fee, which helps cover the cost of future long-term care needs, even if those needs become extensive and long-term. In exchange for this upfront investment, residents are assured that if their health declines, they can transition to personal care, nursing care, or memory care without facing significant increases in their monthly fees.  Type A communities provide a life care guarantee, meaning that no matter how much care you require, your cost structure will remain stable. They also provide a seamless transition from independent living to higher levels of care, all within the same community. This allows residents to enjoy the freedom and confidence of living independently, knowing that they have a plan for the future and easing the stress of facing the unknown as they age. Furthermore, while many Type A communities have a no refunds policy, the entrance fee at The Highlands is amortized at a rate of two percent per month for the first 50 months of occupancy.

In a rental community, on the other hand, residents typically pay a monthly rent for their independent living space and a separate fee for the type and amount of care they need. There is no upfront entrance fee, but as care needs increase over time, so do costs. In a rental community, the cost structure may feel more flexible in the short term, meaning residents pay based on the level of care they require at any given time and are not tied to an initial large payment. However, it also means that residents may face significant increases in their monthly expenses as their care needs change. Unlike a Type A CCRC, there is no life care guarantee to protect residents from potentially escalating costs. In a rental model, the more gradual progression of care can be comforting for those who aren't sure what the future holds. However, because the costs can increase over time based on need, living independently might not feel as certain for some seniors. Without the life care guarantee, there can be concerns about whether long-term care will be affordable and how much it might cost if more intensive care is needed.

Financial goals, health expectations, and personal preferences should always be taken into consideration when choosing between a Type A CCRC like The Highlands and a rental community, but the assurance of life care in a Type A community often makes it easier to live independently. The security of knowing you won’t be burdened by future care costs allows you to enjoy your independent years without the stress of wondering what will happen if your health declines. While a rental community offers flexibility, the financial peace of mind that comes with a Type A CCRC like The Highlands can be an invaluable investment in your future—and in your well-being!

To learn more about The Highlands at Wyomissing® or to schedule a tour, please contact  one of our life plan advisors today at 484-220-8235 or email marketing@thehighlands.org.

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