In reading about retirement communities, I have often come across terminology that is unique to the industry, and I have had to do some research to understand what was meant. Maybe you have had the same experience.

This blog post is an explanation of some retirement-industry terms that initially were new to me.  

Types of communities. Retirement communities can be of various types. The most common ones are “age-restricted communities” (such as “55+ communities”). These may also be called “active adult communities” or “lifestyle communities”. Residents are responsible for their own cooking and cleaning. In some cases, the organization may provide landscaping and exterior maintenance.

I would consider the Conniston and Cartmel communities associated with Kendal-Crosslands to be “active adult” communities.

A slightly different category is “independent-living communities”. These provide services such as cleaning and interior maintenance and may also provide meals. They may provide social activities. They generally do not provide healthcare.

“Assisted-living communities” provide additional services that help with “activities of daily living” (ADLs). These might include assistance with dressing or management of medications, for example.

“Memory care communities” cater to those with dementia, and are sometimes considered a sub-category of assisted-living communities.

“Nursing homes” (also called “skilled nursing facilities”) provide 24-hour nursing care. They may also provide temporary care after surgery or an injury.

“Continuing Care Retirement Communities” (CCRCs also called “LifePlan communities”) provide the full range of services: independent living, assisted living, memory care, and skilled nursing. Kendal and Crosslands are CCRCs.

“Type A, B, and C” contracts. CCRCs may offer different kinds of contracts to their residents. The type offered by Kendal-Crosslands Communities (and by many other CCRCs) is called a “Type A contract”. Under this type of contract, while your fees will inevitably go up each year, the amount you pay does not depend on the type of care you are receiving. You may move back and forth between independent living, nursing care, and assisted living as needed, without affecting your monthly fee.

A ”Type C contract” provides access to all levels of care, but you must “pay as you go”, so higher levels of care have higher monthly costs.

CCRCs may also offer a “Type B contract” under which the resident is allowed a certain amount of assisted-living or skilled-nursing coverage without a fee impact, but must pay a per-diem fee for services that exceed the amount covered by the contract.

As you would expect, Type A contracts are the most expensive, and Type C are the least. Types A and B cover unpredictable costs and are therefore considered a form of insurance. This means they fall under the jurisdiction of state insurance regulations. It also means that part of the cost is tax-deductible in the same way that medical insurance would be.

Kendal-Crosslands is a member of a 14-member CCRC Area Council. 13 of the CCRCs in the Council offer only a Type A contract. But there is one of them that offers only a Type C contract. I am not aware of CCRCs in our area that offer a Type B contract. Perhaps readers can point some out to me. (But see the Note at the end of this article.)

Although I have tried to educate myself about the terms listed here, I don’t consider myself an expert. Some readers may be in a better position to offer corrections or clarifications, and I encourage them to do so, using the Comment facility below.

Note added 6-13-25: A relative points out that Kendal-Crosslands itself uses the term “Type B” to describe a type of contract offered to new residents with an existing long-term care insurance policy. If they opt to keep that policy in effect after moving in, they can get a substantial discount on their entry fee. This is a somewhat different use of the term “Type B” than that described above.