WSJ: CCRCs on the Rise as Alternative to Long-Term Care Insurance

The climbing costs of long-term care insurance have aging families considering continuing-care retirement communities (CCRCs) to spend their aging years. 

While the entrance costs of CCRCs are steep, typically $280,000, according to the National Investment Center for Seniors Housing and Care Industry, the amenities provided by these communities might be worth it in the long run, according to an article from the Wall Street Journal (WSJ).

Long-term care insurers have been battered by low interest rates and expensive claims, writes WSJ, which has even led some large firms to stop selling new policies, while other have raised rates on existing policyholders. 


“If you are 70 years old and pay $400 a month for long-term care insurance premiums, you might think you have your long-term care needs covered, says Justine Vogel, chief executive of RIverwoods, a three-campus CCRC in Exeter, N.H.,” writes WSJ. 

While this $400 a month hardly holds a candle to the $280,000 entrance fee for a CCRC—monthly payments not included—long-term care insurance does not cover expenses like housing, property tax, utilities and food.

Not only are all of these included under the roof of a CCRC, but these communities also appeal to different types of residents, from the healthy and active social butterflies, to the older individuals requiring skilled nursing care. 


Although CCRCs have seen their waiting lists diminish in the past as a result of the housing market, where it was difficult to sell one’s home to cover the costs of entering the community, a recovering market might breathe some new life into CCRCs as more seniors find that they prefer these socially engaging environments than footing the bill for long-term care insurance, among other expenses. 

Read the Wall Street Journal article.

Written by Jason Oliva