Entrance fees are a core component of life plan community contracts, but the amounts—and how much might ultimately be refunded—can vary significantly. These fees are paid upfront and help secure long-term access to housing, services, and future care.

Understanding how entrance fees are structured, what influences their cost, and how refund options work can help prospective residents make more informed financial and lifestyle decisions.

This article builds on our earlier overview of life plan communities by taking a closer look at entrance fee contract options, including fully declining, 50% refundable, and 90% refundable contracts. It also explains the key factors that affect entrance fee amounts and offers guidance on selecting a contract that aligns with personal goals, financial planning priorities, and long-term care expectations.

What Factors Determine the Entrance Fee Amount?

Entrance fees are not one-size-fits-all. The following variables influence how much a resident pays when entering a life plan community:

Apartment or floor plan size—Larger residences typically carry higher entrance fees. Square footage, layout, views, and location within the community all play a role in pricing.
Community amenities—Access to amenities, such as dining venues, fitness centers, wellness programs, transportation services, and on-campus healthcare, can influence entrance fee levels. Communities that offer extensive amenities often structure fees to reflect those benefits.
Number of occupants—Entrance fees may differ for single residents versus couples. Some contracts are designed to accommodate two occupants and include provisions for continued residency if one partner passes away.

These factors work together to establish the base entrance fee, which is then shaped further by the type of contract selected.

Understanding Life Plan Entrance Fee Contract Options

Most life plan communities offer multiple entrance fee contract structures. The three most common are fully declining, 50% refundable, and 90% refundable options. Each can affect upfront cost, monthly rent, and long-term financial outcomes.

Fully declining entrance fee

A fully declining contract typically has the lowest initial entrance fee. Over time, the refundable portion decreases, often on a monthly or annual schedule, until it reaches zero.

Key features:

Lower upfront cost
No refund to the estate after the decline period

This option may appeal to individuals who prioritize lower initial costs, do not intend to leave an entrance fee refund to heirs, or would like to use their personal funds for travel or other experiences. A fully declining entrance fee can also provide residents financial flexibility to invest in the market, potentially yielding higher returns over time than a 50% or 90% entrance fee refund.

50% refundable entrance fee

With a 50% refundable contract, half of the entrance fee is returned to the resident or estate when the residence is vacated, regardless of how long the resident lived in the community.

Key features:

Lowest monthly rent of the three contract options
Partial refund preserved over time
Balances affordability and legacy planning

This option can provide peace of mind for residents who want some level of asset preservation without the higher cost of more refundable contracts. The lower monthly rent can allow some residents to live within their monthly income without dipping into savings.

90% refundable entrance fee

A 90% refundable contract has a higher monthly rent than a 50% refundable contract, but the majority of the entrance fee is returned when the residence changes hands.

Key features:

Significant refund to the estate or resident
Often attractive for long-term financial planning

This structure may suit residents who view the entrance fee as a form of reallocating assets rather than an expense. This option can also be a good choice for residents with a larger monthly income who are not as impacted by monthly rent, and wish to prioritize a higher refund.

Determining Which Entrance Fee Option Is the Best Fit

Choosing an entrance fee contract is a personal decision that depends on financial priorities, estate planning goals, and anticipated length of stay.

Questions to consider include the following:

Is minimizing upfront cost a priority?
Is leaving a financial legacy important?
How long do you expect to live in the community?
How does the entrance fee affect overall retirement assets?

Discuss these questions with financial advisors, family members, and community representatives. They can all help to clarify which option best aligns with your goals.

Comparing Life Plan Agreements and Rental Options

Many senior living communities offer either life plan contracts or rental agreements. Clermont Park uniquely offers both options. Life plan communities combine residential living with long-term care planning, guaranteeing access to higher levels of care if they are needed in the future. Rental agreements can be a preferred choice for those looking for shorter-term or lower-commitment arrangements.

Life plan communities typically offer the following:

Guaranteed access to higher levels of care
Stable monthly costs over time
One-time entrance fee

For many residents, this structure provides both financial clarity and peace of mind.

Helpful Resources for Continued Research

If you’re exploring life plan communities and entrance fee options, reviewing multiple perspectives can be valuable. Consider the following:

Speaking with current residents
Reviewing sample contracts
Consulting independent financial or legal advisors
Exploring consumer education materials on senior housing and long-term care planning from the Administration for Community Living, a federal agency focused on aging and independence
Reviewing audited company financials to gain peace of mind that your entrance fee will be secure.

You can also learn more about entrance fee structures and community offerings at Clermont Park, where prospective residents are encouraged to explore options at their own pace. Our parent organization, Christian Living Communities, is transparent in sharing our financial statements, which are audited by an independent public accounting firm.

Final Thoughts

Entrance fee contracts are designed to offer flexibility—not confusion. Taking the time to understand how refundable and declining options work can help prospective residents choose a life plan community arrangement that supports both current lifestyle preferences and long-term financial planning goals.

In addition to speaking with community representatives and trusted advisors, resources such as the retirement planning tools available through the Consumer Financial Protection Bureau can provide helpful guidance as you evaluate housing decisions alongside broader retirement goals. To learn more about Clermont Park’s pricing and contract options or to schedule a personal visit, contact us today.