Glossary

Life care contract

Also called: Type A contract

A life care contract, or Type A CCRC contract, prepays future assisted living and nursing care through the entrance fee and monthly fee, so the monthly charge stays roughly level as care needs rise.

Type B (modified) contracts prepay a limited amount of care; Type C (fee-for-service) contracts charge market rates when care is needed. The type determines both the entrance fee and the financial risk the resident carries.

Related terms

Continuing care retirement community (CCRC)

A continuing care retirement community offers independent living, assisted living and skilled nursing on one campus under a long-term contract, so residents can move between levels of care without leaving.

Definitions reviewed September 5, 2026. Rules vary by state and change over time; confirm specifics with the community and the licensing agency.