← Back to Blog

Everything You Need to Know About Life Plan Community Contract Types

A happy senior couple sitting on a bench together

As you start researching senior living communities, you’ll quickly discover there are different terms to describe your options like Life Plan Community, Life Care, independent living and so on. What really matters is the contract that determines your peace of mind and financial security. Freedom Village is a Life Plan Community and offers a Life Care contract. All communities with Life Care are Life Plan Communities but not all Life Plan Communities offer Life Care. To learn about the differences, and benefits, of each contract type, read on.

Know Your ABCs

There are several types of senior living contracts out there,  here’s a breakdown of your options:

Type A (also referred to as Life Care)

At a Life Care community, like Freedom Village, you pay an entrance fee, which is often partially refundable to you or your estate and a monthly service fee. Type A contracts often ensure priority access to all levels of care the community offers at predictable, below-market rates. If you or your spouse need different levels of care, you’ll often pay just one monthly fee plus any additional meals needed. According to the Department of Health and Human Services, 7 out of 10 adults will need long-term care at some point for an average of 3 years. If you ever need long-term health care, having a Life Care contact can save you tens of thousands of dollars.

Type B (also called modified plan)

These communities include housing and services and amenities, and just like at a Type A community, you’ll pay a one-time entrance fee and a monthly service fee. However, the care structure is vastly different. As part of your entrance fee, you may receive care in one of two ways: 1) a limited number of free days of health care, with additional days billed at per diem market rates, or 2) an ongoing, minimally discounted rate. However, if you and your spouse need different levels of care, you may end up paying two monthly service fees to cover those two different care levels.

Type C (also known as fee-for-service)

Housing and services are provided, and the entrance fee and monthly service fee tend to be much lower than with the other two contract types. You may have access to care, but it will be charged at market rates, which are typically much higher than a Type A or B contract. Also, if you live in independent living but need care on a short-term basis, you may be required to pay your monthly service fee for your independent living residence, plus the costs of housing and the health care you receive.


Not all communities require an entrance fee — rental communities charge you rent by the month. Some rental communities may have year-long leases while other might literally month-to-month obligations. People who choose rentals may prefer the flexibility, however, rental monthly service fees may be higher than what you’d pay in a comparable entrance fee community. Many rental contracts don’t offer on-site care or provide you with priority access to health care services. If you ever do need care, you’ll have to pay for it at full market rates, while also covering your monthly rent.

Benefits of Choosing Freedom Village

Now that you know the difference a contract makes, there are also specific advantages to choosing a Type A contract community like Freedom Village. Whether you’re in independent living, assisted living, memory care, skilled nursing or rehabilitation, your living accommodations, services and amenities can be adjusted to suit your lifestyle and future needs. Plus, we offer contract options that refund a portion of your entrance fee to you or your heirs, protecting your assets and ensuring your legacy.

Flex Your Future

This program lets you tailor your senior living costs to suit your budget. If you want to customize your entrance fee, simply select your residence now with less out of pocket, then pay the remainder of that entrance fee on a flexible timeline.

Knowledge is Power AND Freedom

Wondering about the costs of a Type A Life Plan Community? Use our MoneyGauge Calculator to see how we fit into your budget. Or to learn more about our pricing and the difference the community and contract you choose can make to your future, schedule a personal tour by using our Community Assistant chat feature or contacting us here.