What Is a Life Plan Community (CCRC)?

How the Fees Work

Life Plan Communities use two types of fees.

Entrance fee. This is a one-time payment made when a resident moves in. Nationally, entrance fees range from roughly $100,000 to over $1,000,000 depending on the community, the size of the residence, and the contract type. Many communities offer a refundable option — often 50% to 90% of the entrance fee returned to the resident or estate upon departure. Some communities offer fully non-refundable entrance fees at a lower upfront cost.

Monthly service fee. This is an ongoing fee that covers housing, utilities, dining, housekeeping, transportation, and access to community amenities. Nationally, monthly service fees for independent living residents typically range from $2,500 to $6,500 per month. Fees increase when a resident moves to a higher level of care, though the degree of increase depends on the contract type.

The Four Contract Types

The contract type is one of the most important decisions a family makes when choosing a Life Plan Community. It determines how much the resident pays if care needs increase.

Type A — Life Care. The monthly fee stays largely the same regardless of which level of care the resident needs. This provides the most financial protection but typically requires a higher entrance fee. It functions similarly to a long-term care insurance policy built into the contract.

Type B — Modified. The monthly fee includes a set number of days at higher care levels at the current rate. After that, the resident pays market rates for additional care. This offers partial protection at a lower entrance fee than Type A.

Type C — Fee-for-Service. The resident pays market rates for any care they use above independent living. This typically has the lowest entrance fee but the least financial protection if significant care is needed.

Type D — Rental. No entrance fee is required. The resident pays a monthly fee for their unit and pays separately for any care services used. This is the most flexible option and the easiest to exit, but it provides no long-term care cost protection.

What the Monthly Fee Typically Includes

Most Life Plan Communities include the following in the base monthly fee:

• One or more daily meals in a community dining room
• Utilities including electricity, water, and internet
• Weekly housekeeping
• Transportation to medical appointments and local destinations
• Access to fitness, wellness, and social programming
• Maintenance of the residence and common areas

Some communities include additional services such as laundry, valet parking, or concierge services. Others charge separately for these. Asking for a detailed list of what is and is not included is an important part of the first call.

National Cost Benchmarks

Nationally, Life Plan Community fees vary widely based on geography, community size, amenities, and contract type. These ranges reflect typical market conditions across the country.

Entrance fees (national range):

• Studio or one-bedroom unit: $100,000 – $400,000
• Two-bedroom unit: $250,000 – $700,000
• Premium residences: $500,000 – $1,000,000+

Monthly service fees (national range):

• Independent living: $2,500 – $6,500
• Assisted living level: $4,000 – $8,000
• Memory care level: $5,500 – $10,000
• Skilled nursing level: $7,000 – $12,000+

Costs vary significantly by region. Urban and coastal markets tend to run higher. Smaller or inland communities often offer lower entry points. These figures are planning benchmarks, not guarantees. Always request a full fee schedule and contract summary before making any decisions.

Who This Setting Is Best For

A Life Plan Community is typically a strong fit for someone who is currently independent and healthy, has the financial resources to cover the entrance fee and monthly costs, wants to avoid the uncertainty of finding new care settings if their needs change, and values having a full social and amenity environment as part of daily life.

It is less likely to be the right fit for someone who needs immediate hands-on care, prefers a smaller or more intimate setting, or does not have the financial resources for the entrance fee.

What to Ask on a First Call

When calling a Life Plan Community for the first time, the most important questions are:

• What contract types do you offer?
• What is the entrance fee range for the residence types you have available?
• What does the monthly service fee include, and what costs extra?
• If my care needs increase, how does my monthly fee change?
• Is the entrance fee refundable, and under what conditions?
• What happens if one partner needs a higher level of care and the other does not?

These questions will tell you quickly whether a community's financial structure fits your situation and whether it is worth scheduling a tour.