Comparing the Different Types of Retirement Communities

Retirement Community Types

At BayWoods of Annapolis, we want seniors to make informed decisions about their retirements, so we’ve created a quick comparison of the different types of retirement communities that you’re likely to encounter. If you have any questions about the costs of living at BayWoods of Annapolis, feel free to get in touch with our staff.

Insurance Model or Life Care Community

The design of a Life care model or Insurance model community usually has monthly fees associated in Independent Living that would follow them throughout their life. No matter what level of care they received. Most Life care communities require larger up-front fees, then monthly payments that are contingent on your  health status for the duration of care and service. The larger entry fee covers the cost of future care requirements.


This is the most straightforward model, a fee-for-service plan, requires you to pay for only those services that you use or need. This works best for most people because they are not paying high costs for services that they may never need or utilize. Their monthly payments are usually required a little higher but entrance fees are lower. These communities are very popular and practical for most. Any changes in care will most likely cause your monthly payments to fluctuate. This model requires less money down, but the cost of care will increase as additional care becomes necessary.


Some retirement communities offer services based on your age, level of assistance that will be required for long-term care, and other considerations. These modified or hybrid payment models are typically similar to the insurance model, requiring a large up-front payment and monthly payments after that. Unlike the insurance model, your cost of care is not set in stone, so additional care requirements later on will incur additional fees.

Choosing to move to a continuing care retirement community is great decision, but is a decision that you should have sound advice before choosing. The staff at BayWoods of Annapolis is trained and versed on being a resource for you NOT a sales person. We make ourselves available to answer any questions you have about payment plans and what sort of retirement communities will fit your lifestyle and budget. Feel free to reach out to us with any questions or if you’d like more information about living at BayWoods of Annapolis. We are here for you.