Is family dental insurance better than a dental discount plan? Dental insurance policies are may provide excellent protection when bought through employer-sponsored insurance contracts but not so on private stand alone dental plans. For this reason, the one and two-year waiting periods you will usually see on individual dental plans and the high price of standalone dental insurance, discount dental plans are often better suited for those who are unable to purchase their dental insurance through an employer.
It is important to note the difference between standalone dental insurance plans and dental insurance that is acquired as a rider on an individual medical insurance policy. Insurance companies tend to have better loss ratios when dental insurance is packaged with individual or family health care insurance plans. This fact often makes this an affordable way to pay less for dental care.
It is more than the discounts that come when you buy in bulk that makes group dental insurance a better bargain than standalone individual or family dental insurance. Most people think that the buying power is the only reason for the difference in cost, the major reason is based on something called adverse selection. When an insurance company insures a large group of people at one company, they usually get a fair share of policyholders who are never going to visit a dentist. When plans are sold to individuals, they will disproportionately get policyholders who will use the insurance in a significant way.
Since so many people fail to shop around, the insurance companies continue to offer these policies even though they are usually over-priced and offer little value. Consumers are getting more sophisticated. We are doing a lot or research online and may stop buying these contracts at some point in the future.
Another reason that individual or family dental insurance policies usually are a bad value when compared to discount dental plans is that there is quite frequently a lengthy wait before you can use the insurance for the big stuff. You may need to wait two or three years before anything major like an implant is covered with an individual or personal dental insurance policy.
What is more unfortunate than the elimination period itself is the policyholders’ lack of knowledge of the waiting period. Since this information is hidden in the fine print, many consumers are unaware of the elimination period until they submit a claim.
As a rule, a discount dental plan will benefit you right away or nearly right away so. You may need to wait until the beginning of the following month, but no more. This offers you a big advantage over most standalone individual or personal dental insurance policies.
Although dental insurance may offer more benefits than a dental discount plan, you will probably overpay for those additional benefits if you get a standalone policy. A dental discount plan is very low in cost. The annual cost is often equal to two monthly premiums for a dental insurance policy.
It pays to shop around and be aware of all your alternatives when it comes to dental insurance and dental discount contracts. Although group dental and dental insurance bought as a rider on a health care insurance policy can be a good value, discount dental plans will have big advantages over individually bought standalone dental insurance.