Discount Dental Plans

Discount Dental Plans vs. Dental Insurance

When you're looking for assistance in covering high dental costs you have two options available to you. The one most people gravitate to is traditional dental insurance (sometimes referred to as individual dental insurance of family dental insurance). However there is a second option available as well;
discount dental plans.

Dental insurance is based on the traditional insurance concept. Offered in some form by insurance companies, whenever you incur a covered dental expense, you submit your claim to the insurer. After (and if) your claim is approved, the insurer will reimburse you some amount - typically after copays,
deductibles and maximums have been accounted for.

Dental plans however are a not insurance. Instead they are 'discount' plans that allow members to recieve substantial discounts on their dental costs. Because there is no underwriting by an insurer, there tends to be a wider array of services available to be discounted. As well there are no waiting
times or eligibility periods.

In addition, as an insurance based concept, the insurer will price and design the insurance so that they have enough money built into the premiums to allow them to make a profit. Over their client base over time, the benefits paid out will be less than the premiums recieved. While this is exactly the
opposite of what most insureds are looking for (they're looking to save money) it's the way the plans must be designed for insurance companies to make money. Discount dental plans work in the opposite fashion - you may very well receive benefits and savings in excess of the cost of the plan on your
very first visit to the dentist as a member.

For example, a new dental insurance plan might have a waiting period of 6 months during which time you are inelible to claim braces. Once you've met that qualification period you will be subject to copays, deductibles, and maximums.

By contrast, discount dental plans allow you to receive savings immediately upon enrolment. Let's say you need braces costing $1500. If your discount dental plan allows for a $20% savings on braces, you will save $300 on the cost of your braces. If you've only paid $100 for your discount dental plans,
you've saved $200. This will of course vary by dental plan. Some dental plans will also apply to cosmetic procedures, something not traditionally covered by most dental insurance plans.

Where dental plans lack in comparison to traditional dental insurance is also where it shines - in the 'insurance' aspect. Should you suffer the need for a catastrophic dental procedure that is very high dollar, dental plans may only provide a discount. Dental insurance plans may cover a larger portion
of such a catastrophic loss. This however is not a certainty, as these types of coverage vary widely amongst dental insurance policies.


Here's a comparison of the two types of dental coverages: