Dental Plans

Employer Provided Dental Plans Versus Individual Dental Plans

In the world of dental insurance, there is a sharp divide between two groups: those who have dental benefits through their employer, and those who do not. For those who do have access to employer paid dental plans, there should be little question about its cost effectiveness. This is because employers essentially purchase dental plans in bulk. Because they are bringing in so many new policy holders all at once, the dental insurance carrier can afford to give them the best rate possible, and tailor a plan exactly to the benefits that the company wants to buy for its employees.

Company dental plans are highly competed over by insurance companies, which is another motivator for them to reduce premiums on the dental plans as much as possible. For those who have dental plans offered by their employer, this is almost always the most cost effective way of getting dental coverage.

Not all workers have the luxury of company-offered dental plans. This leaves the burden of obtaining dental coverage on the individual. Attempting to find your own dental plan can be an overwhelming prospect, with the endless number of carriers and dental plans available. Individual dental plans can be a bit hard to find because not all insurance companies offer coverage to individuals.

Individual dental plans also tend to be more costly for a few reasons in addition to the ones already addressed. The reason that many other types of insurance – car, home, etc. – can be offered to individuals at good rates is because the number of people who will actually have to file a claim for benefits is relatively small compared to the number of people who are insured. Thus, insurance carriers make a considerable profit on the individuals who pay every month but never need to take advantage of their insurance.

With dental insurance plans, however, there is little risk or surprise involved. Most people will use their insurance at least every six months for their semi-annual check up. Additionally, many people get dental plans only when they already know they will need it. For example, if an individual knows that (s)he will need to have their wisdom teeth pulled in the near future and they are uninsured, they will likely purchase a dental plan. There is a much higher rate of use for dental plans than many other forms of insurance.

There are a few options for those who do not currently have a dental plan. If you are employed, talk to your employer about adding dental benefits for employees. This is not something that costs the employer any money. If enough people in your workplace are interested in a dental plan to constitute a “group” in the eyes of the insurance company, you can all pay for your insurance premiums, costing the employer nothing, but will still get great rates for all buying together.

If this is not an option for you, begin by contacting a local insurance marketing company or insurance agent. These companies are almost always paid by the insurance carriers, not by their clients. They will ask you about the benefits and type of coverage that you need and work with multiple insurance carriers to see who can offer you the best rate.