Entrance & Monthly Fees: A Plan for Every Budget

• Summary of Entrance Fee Options
• Fee Schedule Standard Plan (Option I)

Covenant Woods Fees & Features

Covenant Woods provides lifetime residency, services, and if needed, health care in return for a one time entrance fee and a monthly service fee. Five entrance fee options are available. Each features a different combination of health care coverage and / or refund provisions.

Entrance fees vary depending on the option selected, the type of residence, and the number of occupants. Monthly fees vary based on the residence size and the number of persons in residence. This is a summary of the fee information — please refer to the Disclosure or Residency Agreement for complete details.

Entrance Fee Options:

One of the entrance fee options is selected at the time the apartment or cottage is selected and the Residency Agreement is completed. You may switch to another entrance fee option prior to moving to Covenant Woods without penalty. The choice of entrance fee option depends on your priorities and philosophies regarding asset usage, estate preservation, and assessment of your long-term health care risk.

Option I: Full LifeCare — Declining Refund

This is an excellent choice for those who prefer both short-term and long-term protection against possible catastrophic health care costs, with a moderate entrance fee. Consider the following features:

• Should the need arise to transfer to the Health and Wellness Center for assisted living, nursing care, or memory support, there is no increase in monthly fees over that of the independent living residence, except for additional meals and ancillary charges.*
• The entrance fee refund potential declines at the rate of 2% per month or partial month of residency, offering short-term protection against early cessation of residency. Beginning in the 50th month, there is no refund.

Option II: Full LifeCare — 90% Guaranteed Refund

This option should be considered by those whose main concerns include preservation of their estates and the security of full LifeCare protection. This plan has a higher entrance fee than does Option I. Features of this option include:

• Should there be a need to use the Health and Wellness services, short-term or long-term, there is no increase in monthly fees over that of the independent living residence, except for additional meals and ancillary charges.*
• When residency at Covenant Woods ceases for any reason, there is a refund paid

to the resident, or the resident’s estate, equal to at least 90% of the entrance fee that was paid. The refund potential declines at the rate of 2% per month or partial month. It then remains at 90% of the entrance fee paid.

Option III: Full LifeCare — 50% Guaranteed Refund

This option should also be considered by those whose priorities include preservation of their estates and the security of full LifeCare protection, but who wish to pay a smaller entrance fee than for Option II. Features of this option include:

• Should there be a need to use the Health and Wellness services, short-term or long-term, there is no increase in monthly fees over that of the independent living residence, except for additional meals and ancillary charges.*
• When residency at Covenant Woods ceases for any reason, there is a refund paid to the resident, or the resident’s estate, equal to at least 50% of the entrance fee that was paid. For the first twenty-five months of residency, the refund potential declines at the rate of 2% per month or partial month. It then remains at 50% of the entrance fee paid.

Option IV: Continuing Care — Declining Refund

This alternative has a lower entrance fee than Options I, II and III. It may appeal to those who wish to preserve their current assets and feel that their long-term care insurance will sufficiently cover any necessary health care services at Covenant Woods. Features of this plan include:

• The entrance fee for this plan is discounted due to the reduced health care benefit. Residents on the Option IV program receive all other services enjoyed by those on the other entrance fee plans and also have priority entrance to the Health and Wellness Center. A qualified long-term care insurance policy is required.
• There is estate protection in the first fifty months, similar to Option I. The entrance fee refund potential declines at the rate of 2% per full or partial month of residency. Beginning in the 50th month, there is no refund.
• Residents on the Option IV plan are charged the regular non-LifeCare-resident per-diem rate for services in the Health and Wellness Center.

Option V: Deductible LifeCare — Declining Refund

This unique option has a discounted entrance fee. It is an excellent choice for those who wish to minimize the use of current assets by using their long-term care insurance policy to minimize the risk of high health care costs for a period of time, but desire to have LifeCare protection long-term. Features of this plan include:

• The entrance fee for this plan is discounted due to the short-term reduced health care benefit. Residents on the Option V program receive all other services enjoyed by those on the other entrance fee plans and also have priority entrance to the Health and Wellness Center. A qualified long-term care insurance policy is required.
• Residents on the Option V plan are charged the regular non-LifeCare-resident per-diem rate for services in the Health and Wellness Center for the first 1,095 days of such care — three years (cumulative and non-consecutive). After that, the full LifeCare benefit takes effect. From that point on, there is no additional monthly fee for health care services.*
• There is estate protection in the first fifty months, similar to Option I. The entrance fee refund potential declines at the rate of 2% per full or partial month of residency. Beginning in the 50th month, there is no refund.

*That is, the monthly fee remains that of the independent living residence, except for extra meals and ancillary charges, and is adjusted periodically for inflation and changes in operating costs. Residents are required to carry an acceptable long-term care insurance policy if they choose Options IV or V.