Continuing Care Contract Definition

A continuing care contract is an agreement between a senior adult (usually defined as a person over 60) and a provider of long-term care services. Although the terms of the contract may vary, typically the senior adult pays a set fee in return for life-long care services, which may include housing, medical care, supervision, and meals. In most cases, an entrance fee and monthly fees are required. The care provider’s contractual obligations cease with the death of senior adult and the contract itself has no cash value. Therefore, if a person contracts with a provider and dies months later, heirs do not receive any compensation for having used the facilities for such a short period. It is important to review the details of any such contract before signing. Each state has laws governing these types of contracts and protecting senior adults from fraud.

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