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AUTHOR: Joe D'Alessandro on 6/22/2024

I am 60 and my wife is 61, both in good health.  Like most everyone, we want to stay in our home as long as possible.  Long term care (LTC) is expensive and restrictive.  However, there’s an option local to us in Lancaster PA from a very reputable and long-standing Continuous Care Retirement Community.  They have a program called SmartLife (SmartLife VIA Willow Valley – Central PA’s True Life Plan at Home Program (smartlifewv.org)) where you pay a one-time up-front fee and then a monthly charge, all based on age when first enrolled, and then you access in-home care when / if needed all the way up to full time care in the facilities, if needed, until death.  The in-home care is robust, as with their facility care.  Of course, this is LTC insurance.  I got a quote that for my wife and I, the upfront fee would be $90,000 and monthly fee $1,500 per month, forever.  The upfront fee is one time (and non-refundable), and the monthly fee has only gone up each year between 2 to 3%.  While we could afford this, I ran a calculator and if I self-funded LTC needs by pitting $1,500 into a savings account earning 4% interest, I would accrue $223k in 10 years, and $557k in 20 years (before tax).  The allure of doing this is the peace of mind of knowing care is there when you need it, and to not burden your family should care be required.  But it’s a lot of money.  Anyone have thoughts on either approach?

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Nuke Ken
4 months ago

Joe, I live about a mile from Willow Valley. My daughter worked there for a time. In fact, my father spent his last 11 days there (in 2001). He had cancer and was on hospice at home until the very end. My parents had no LTC insurance but were able to pay by the day for his stay at Willow Valley after he went into his final decline. I have no idea if this is still an option. Every so often, I get a mailing from Willow Valley advertising the SmartLife Plan. Never knew what the cost was until reading your article.

Michael1
4 months ago

Another tough to quantify advantage of this hybrid approach may be continuity between in-home and in-community. I know of a community that welcomes the people getting their in-home care to also come participate in any community activities they want. If you’re one of those people and get to the point you need to go into the community, you may find you go into an already existing social circle.

mytimetotravel
4 months ago

I’m with Sonja. I moved into a CCRC last October. I have trouble understanding the desire to age in place. My house was 33 years old and I was tired of the maintenance. I would have had to make modifications if I became unable to handle stairs. I would be stuck if I became unable to drive. I was single and childless, if I needed in home care I would have to arrange it myself. I chose a non-profit CCRC that promises to keep me if I run out of money.

OldITGuy
4 months ago

Excellent article! I had no idea that some CCRC’s are now offering a hybrid approach. Reading about this, it appears to be a good fit for someone who really wants to age in place while providing a contingency path to getting the care they may need without having to manage it themselves. If someone can afford the cost, it seems like a nice safety net for someone who wants to age in place.

Sonja Haggert
4 months ago

We have decided on a continuing care community for our future needs based on several factors, including their financial health and the availability of nursing care should that be needed. We had the added advantage of knowing someone who worked there and raved about it.
When looking at the fees, you may find they are not that far out of line with your monthly budget. And then there’s the tax advantages.

1PF
4 months ago

About the SmartLife Willow Valley program, I see that it’s nonprofit. Find their financial audit report, especially their Fitch IDR (Issuer Default Rating). Keep in mind that the entry fee, not just the monthly fee, is likely to go up with time. The site states that it depends on your age but doesn’t give detail.

Is your home physically suitable for aging in place? If not, your additional costs may be high if renovation is needed to make it so.

SmartLife’s focus is on serving your health needs. Staying healthy is paramount, of course, but aging happily needs more. At higher cost, a CCRC typically has many other features to make daily life easier and more enjoyable, e.g., meal plans; housekeeping; maintenance; and for socializing to avoid the isolation that so often accompanies aging, on-site amenities and activities (programs, interest groups, pool, exercise classes). Thinking of your location and your daily life, will you be happy if you age in place at home?

Jonathan Clements
Admin
4 months ago

My mother is in a continuing care retirement community, and I think it’s a great concept. But, of course, the devil is in the details. If you need nursing care, is the monthly cost the same as for independent living? Is the community a for-profit organization that might merrily hike rates? How strong are the community’s finances?

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