Refundability is one of the most important details in a CCRC contract. Here is how refund plans work and what to watch for.
Are CCRC entrance fees refundable?
Many CCRC entrance fees are partially or substantially refundable, but it depends entirely on the contract you choose. Refundable plans commonly guarantee 50%, 75%, or 90% of the fee back to you or your estate, typically paid after your residence is re-sold or re-occupied. In exchange, these plans carry higher upfront fees. Declining-balance (non-refundable) plans cost less initially but the refundable portion shrinks over time — often to zero after a few years. Because terms and payout timing vary, reading the residency agreement closely is essential. Call 1-800-MEDIGAP (1-800-633-4427) to understand your options.
How do CCRC entrance-fee refunds work?
With a refundable contract, the community returns the guaranteed percentage — 50%, 75%, or 90% — when you move out, pass away, or your unit is re-occupied, depending on the agreement. Two key details matter: the refund percentage and the trigger for payment. Some contracts pay the refund only after a new resident occupies your unit, which can mean a delay. Others pay on a fixed timeline. Ask each community to spell out the refund amount, timing, and conditions in writing. A licensed advisor can help you compare the fine print — call 1-800-MEDIGAP (1-800-633-4427).