If you’re considering senior independent living, evaluating your financial options is an essential step in the process. While an entrance fee is required to become a resident of our life plan community at Otterbein SeniorLife Granville, there are multiple financial options to choose from. Depending on your situation and financial means, you can decide what works best for you.
An entrance fee covers the residence (apartment or cottage) you select and secures your place in the community if your care needs change. This is different from monthly fees, which cover utilities, your meal plan, housekeeping, maintenance, etc.
For a general overview of Otterbein Granville’s financial options, watch the video below to hear an explanation from Otterbein Granville Marketing Director Derik Kroeze.
Two Contract Options to Choose From
To determine your entrance fee and monthly fee amounts, you must choose from one of two contract options: the Continuing Care Plan or the Life Care Plan. Both plans include preferred access to long-term care in either assisted living or skilled nursing, but the amount you would pay for said care can vary, depending on which care plan you choose.
Option 1: Continuing Care Plan
The Continuing Care Plan includes preferred access to long-term care in either assisted living or skilled nursing care. This plan provides 100 days of inpatient care at 25% off the daily assisted living or skilled nursing rate.
The Continuing Care Plan is characterized by a lower entrance fee and less upfront cost. However, once you start receiving assisted living or skilled nursing care, you will be paying the current market price for as long as you receive care.
This option is often preferable for those who:
- Have long-term care insurance
- Looking for lower upfront cost
Option 2: Life Care Plan
The Life Care Plan is a prepaid option that also includes preferred access to long-term care in either assisted living or skilled nursing care. This plan provides predictable financial coverage for long-term care.
Although the entrance fee is higher for the Life Care Plan, you pay an equalized pricing rate plus a meal charge when accessing these services. This plan also offers potential tax advantages with the prepaid health care portions of the entry and monthly fees.
The Life Care Plan is often desirable for those who:
- Want maximum peace of mind for their future care
- Want to receive tax benefits
Three Entrance Fee Refund Plans to Choose From
In addition to choosing a contract type, you must also select from one of three entrance fee refund plans. The option you decide upon will determine the amount of your entrance fee balance (what’s left over) that will go to your estate once the contract has ended.
Starting with the highest entrance fee option, the three refund plans are:
- 85% refundable
- 50% refundable
- 2% declining balance
Essentially, the higher the entrance fee, the higher the refund amount will be. For example, if you choose the 85% refund plan, 85% of your entrance fee balance will go to your estate. For the 2% declining balance, the entrance fee balance declines 2% every month for 50 months, at which time there is no refund.
How to Pick the Right Financial Option for You
If you’d like to make Otterbein Granville your new home, but you’re not sure which financial option would be best for you, asking yourself the following questions could help:
- How many people will be living there? Is it just you, or do you have a spouse moving with you?
- Do you have long-term care insurance?
- What’s more important to you right now? Lower upfront cost or more peace of mind for the future?
- Do you want to start paying for future care now or later?
- Are you looking for tax benefits?
- How much would you like to leave to your estate and/or loved ones?
Still not sure? Just reach out to us at Otterbein Granville, and we can answer your questions, help you set up a visit, and more.