Insurance Info

Dental Insurance Plan

Everyone wants dental insurance. Know why? The need for dental work at some time or another is inevitable. Few escape the dentist. Thus we have dental insurance and the need thereof. The very nature of this need causes a little bit of a problem though. You see, insurance is the transfer of risk. This is a transfer of risk for unknown and unforeseen events (in this case dental work) yet to happen. But, this is dental work we are talking about. We KNOW we will need to go to the dentist.
When insurance companies agree to accept risk in exchange for a premium. They know a certain percentage of policyholders will not have many, if any, claims against the policy. This is not so of dental insurance. Everyone will use it, this is almost guaranteed. By definition, that is not a transfer of risk, but a liability. What does this mean? Higher cost to dental insurance companies and a higher premium quote for us. Yes, I know my dentist all too well.

Discount Dental Plans

What you will find in your search for dental insurance is pretty much the same everywhere you look. First off is discount dental plans. A discount dental plan is not an insurance plan. You will receive discounts from retail according to a predetermined schedule. These plans have no preexisting limitations or benefit limits like you find with dental insurance.

Dental Insurance Plans

True dental insurance is available on a group basis, which is often a group of five or more unrelated individuals and paid for by a single employer as a benefit for employment. Individual dental insurance can also be purchased for one person or as a family dental insurance plan. What these plans will have in common is waiting periods, preexisting limitations and an annual monetary cap on benefits. It is difficult for the insurance company to make the plan too rich in benefits, and stay in business to offer coverage. The greater the dental benefits are the more work we tend to have done. It’s a little like trading dollars. Over a years time we give them $700 and they give us back $1000 in benefits. If we need the dental work, I always do, it’s worth it. If you anticipate needing less work then the discount dental plan is the way to go.