https://homewoodmartinsburg.com/tak...MImaul-ffagwMVLGhHAR2luQGGEAAYASAAEgKGePD_BwEThat's age discrimination, they are getting their revenge
Not enough info for a good answer:
Is this simply a gated community type thing or like FL Villages, or has health care included ?
How much is the extra ?
Is it one time or yearly until you age out and if so is it on a decreasing/sliding scale ?
That is not just a retirement community - it's a CCRC. Quite different. The question as to our thoughts about the fee is really not relevant - what are YOUR thoughts? How much is it, and for how long would it be in effect? One time, $1000, $10000? etc.
Is everything else about it perfect for you?
I really want the explanation of their 'insurance commission" reference.
No idea what reference you're talking about, but surely you need to ask them, not us.
One time "community fee" of $5000 to $10,000 is normal, but that is for everyone regardless of age. Are they looking to charge you that as well?
I would ask for an explanation of what the $5000 insurance commission is for. If it doesn't sound appropriate to you, just be honest and tell them you love everything about the place and are ready to sign except for the $5000. If they don't want to budge, then tell them you have to think about it more, have a few other places to check out, and will get back to them once you decide.
The $5,000 is in addition to the $213,000 entrance fee.
I agree with the recommendations to do further due diligence. The term 'insurance commission' is worrisome. You do need a thorough explanation and you may want to contact the state Insurance Commissioner after you have it to make sure it can be charged.
I don't want to feel I am being taking advantage of. I really want the explanation of their 'insurance commission" reference.
I am considering retirement community. They are adding a fee because I am under 70. Thoughts?
The $5,000 is in addition to the $213,000 entrance fee.
There is a $231k entrance fee and a $5k age related fee added on in OPs case. That's $236k total. Compare that number to the bottom line at other CCRC's you are considering. They all have ways of slicing and dicing the amount you are going to have to pay as an entrance fee. If the $236 is competitive with the other places and you like this place and have checked out all the subjective factors, I wouldn't let it bother me.
As a thought on what the fee might represent, remember that Type A CCRC's have an insurance premium-like component built into their entrance fees and monthly fees. This pays for the fact that you are buying a form of LTC insurance. Younger people represent a higher risk of using LTC and therefore might be charged a bit more.
DW and I have been shopping Type A CCRC's for several years. It still makes our heads spin although we've read books, listened to dozens of presentations, talked to residents and spent hours with sales reps asking questions. And we even have spreadsheets doing comparisons of several facilities regarding costs and benefits.
We find this to be the toughest shopping we've ever done, by far, and dwarfs simple projects like getting a decent deal on a car, major appliance or even a house. We're now delving into Type C CCRC's since, while likely to be more expensive in the long run, you can walk away at the end of any lease period with no fear of losing deposits, etc. Or, if something promised is not being delivered or services are not up to your expectations, you're outa there!
I went through helping my mom evaluating and moving into a CCRC 5 years ago now. I have a couple thoughts:
I also consider a CCRC as a likely destination for me, but my take on when revolves around delaying until it's absolutely necessary - but I'm still able to medically qualify. The monthly rent is considerably more than just a comparable apartment and the opportunity cost of the bond locked away adds up over time. My mom is still doing well and happy in her CCRC 5 years later. But it is expensive, and so far my mom has received very little benefit other than a nice apartment rental for what is a rather high price. Hindsight would be my mom would be better off moving into her CCRC today - at age 93 - and pocketing the previous 5 years expenses, but we didn't know that at the time of course. For my decision, I will play it by ear, but I don't foresee moving into a CCRC before/around age 80 or later in my plans. Hopefully much later. Nothing would please me more than moving into a nice CCRC independent living apartment at age 90 (25 years from now).
When evaluating the move in costs, remember to ask what percentage can be claimed as a medical expense on itemized taxes. The total due on move in is broken down into all kinds of categories and a portion will be itemizable medical expenses. That is especially important in the first year as some portion of the non-refundable portion of the bond will be deductible.
Does the entrance fee include a life plan contract where your monthly fee will not increase if/when you need a higher level of care? If so, a one-time charge of $5000 seems like a very small additional amount if you enter in your 60s, given the high cost of CCRCs generally & how long you might be living there.
If there's not a life plan contract but it's a "fee for services" plan, I don't understand the "surcharge" for entering at a young age, but that's up to you to evaluate. Can you afford it? Do you want to live there? There's a lot you have to learn before making a decision.
Some Type A contracts have refundable provisions (25%, 50%, 75% - I've seen one with 100%). The more refundable, the larger the upfront cost and monthly fees.