Why Do I Need to Pay an Entrance Fee?

Dear Acts,
My husband and I are considering moving to a retirement community, and Acts has been highly recommended by several friends. But we’re a bit stuck on one thing: the entrance fee. We’ve always been careful with our finances, and the idea of paying a large up-front fee makes us nervous. Why is this necessary? What exactly are we getting in return? Why aren’t we better off moving into a community with no entrance fee at all?
— Cautious but Curious in Maryland

Dear Cautious but Curious,
Great question—and one we hear often from thoughtful future residents like you.
First, let us say: it’s smart to ask! Choosing a Continuing Care Retirement Community (CCRC) like Acts is a big decision, and understanding the financial structure is key to feeling confident in your choice.

The entrance fee is a one-time investment that helps secure not just your residence, but your long-term care for the future. Think of it as more than just the price of admission—it’s peace of mind, wrapped in a sound financial investment. Here’s what you’re really getting:

• A home for life. Your entrance fee guarantees you a residence for as long as you need it—even if your health needs change. Whether you’re living independently or your or your husband eventually need assisted living or skilled nursing care, you won’t be asked to leave because of a change in your financial situation (subject to the terms of the contract, of course). Instead, you or your spouse will move to an appropriate neighborhood on the same campus.
• Predictable healthcare costs. With a Type A Life Care contract, your monthly fees don’t change strictly because your level of need does. Put another way, if you or your husband does need to move to assisted living, your monthly fees don’t suddenly increase thousands of dollars, which is what would happen if you moved into a community with no entrance fee. It’s like locking in a kind of “healthcare insurance” at today’s rates. You pay the entrance fee now, so you don’t have to pay for more expensive month-to-month service later.
• A community built for well-being. That entrance fee helps maintain the beautifully landscaped campuses, vibrant amenities, wellness programs, and enriching activities that make Acts communities feel like home—not just a place to live, but a place to thrive.

Most importantly, your entrance fee isn’t money gone—it’s often partially refundable as a pre-paid health expense, depending on the contract you choose. We offer options tailored to different financial goals and priorities.

So, while it may feel like a big step up front, it’s truly an investment in stability, comfort, and security—not just for today, but for all your tomorrows.

Warmly,
An Acts Retirement Expert