[Diver1111]

As I sell Long Term Care Insurance and have for 25 years, in my experience, the whole Down Payment question is only associated with Continuing Care Retirement Communities aka CCRCs.

CCRCs allow for "aging in place" meaning while you may reside in an "Independent" area on the grounds at first, as your needs increase you can move to the Assisted Living Facility/ALF area on the same grounds, perhaps a Nursing Facility also on the same grounds and the most expensive-the Memory Care unit or wing. Bottom line is that you don't have to move-the CCRC theoretically can provide soup-to-nuts services in one location.

While I have not read an Application to a CCRC in a long time, all have some sort of sum of money you must produce as part of the move to a CCRC. Some give some of back at death, some I have read give perhaps 90% back at death etc.. While they are similar contractually, no CCRC I have encountered is the same. Read everything they give you.

CCRCs may not look like one especially if you only focus on say, the ALF part.

No ALF any of my Clients have ever moved to required any Down Payment of any kind. You choose and pay for any services you need above what is included in the Contract w/the montlhy rent according to any Plan-of-Care/POC you may have.

Contrary to popular opinion Long Term Care Policies pay for all sorts of things provided at a CCRC as long as you meet the claims criteria. Where you live is for the most part not even relevant.

Some folks cancel their LTC Insurance coverage because-for whatever reason-they were under the impression that because they paid money upfront to move into a CCRC that the coverage was redundant-not so and generally a big mistake.