How a CCRC Gains From Entrance Fees Even if they are Refundable

Some CCRC (Continuing Care Retirement Community also known as a LifePlan community) entrance fees, particularly at Type A communities, are refundable at death in amounts of 90%, 80%, or some other amount.  This sounds like a good deal as most of your money will be returned to your heirs but remember that while your entrance fee is in the hands of the CCRC you will not have access to it nor will you earn interest on that money.  In fact, the CCRC will invest your entrance fee with the goal to earn income on it for as long as possible. 

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