When you decide to get some form of dental coverage, you’ll run across “dental insurance” and “dental plans”. Both aim to provide some form of cost-relief for dental work – but are quite different. The fact is a dental plan isn’t coverage, it’s dental care or discounted dentist pricing.
Generally speaking, dental insurance pays out a larger portion per visit or work done IF the procedure is covered by the policy. Discount dental plans give you access to lower-cost dental prices for a wide range of dental work.
Break it down – dental insurance vs dental plans
Structure: A discount dental plan is not insurance. It’s more of a membership model where your membership gives you discounted prices for dental work.
Committed annual cost: dental insurance premiums are typically more expensive than dental plan membership costs. When you get dental insurance, you’re committing to paying more money each year.
Coverage: dental insurance will pay more (sometimes all) of the cost of procedures covered. Discount dental plans are not coverage. Instead you get a discounted price for the work – usually anywhere from 10 to 60% off the usual price.
Qualifying: It’s typically easier to qualify for a discounted dental plan. Some dental insurance policies have onerous restrictions – such as health restrictions and may even do background checks.
Paperwork: Some dental insurance policies require you to pay first, then get reimbursed later. Discount dental plans don’t pay the full cost. The discount is available immediately so you have no paperwork hassle.
Annual spending limits: Most dental insurance policies have a payout cap per year (and may not rollover unused portions into following years). Dental plans have no cap – you can get as much work as you wish; you pay your portion and enjoy the set out discount for work done.
Activation speed: Dental insurance applications can take a while to process. A quality discount dental plan can get you a response and activated (if approved) in 3 business days.
Pre-approvals for dental work: Some dental insurance policies require you get a pre-approval for work done. Not so with dental plans – if the work is discounted in the plan, you choose when to have it done and enjoy the discount.
Looks like dental plans are the way to go – why get dental insurance?
The one key advantage to dental insurance is if a procedure is covered, a larger portion will be paid (generally) by the insurance. The situation where insurance is very good to have is for expensive dental work items that are covered in the policy.
However, the overall savings to you may be as good as with dental plans in the long run. Why? Because dental insurance may have deductibles, the committed annual cost is higher, and the procedures you have done may not be covered. Moreover, you may not get sufficient work done that actually warrants the cost of the insurance premium.
Any other advantage to dental plans?
Generally, with discount dental plans, you have more control over what you spend largely because your committed fixed cost is not as high each year. You get discounted pricing on the procedures you choose to have. Even if you require an expensive procedure, if that procedure is included in the dental plan, you enjoy the savings.
Recommended source for dental plans:
DentalPlans.com compare more than 30 discount dental plans.