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Dental care financing plays a vital role in financial and healthcare planning. It ensures that you and your family have the funds for preventative oral healthcare and any necessary procedures. Dental care is not part of the essential benefits health insurance must cover under the Affordable Care Act.
If you’re looking to cover your dental costs, you might opt for dental insurance or a dental savings plan. Use this guide to compare dental savings plans versus dental insurance.
What Is a Dental Savings Plan?
Also known as a dental discount plan, a dental savings plan is a program that offers members reduced dental rates. Members pay a set annual fee in return for benefits. Dental savings plans are simple schemes with no annual limits, deductibles or waiting periods.
Networks of dentists take part in the plan. Members must use networked dentists to receive discounted prices. Prices are often discounted by between 10% and 60%. The scheme may exclude some services from the savings plan, so check for exclusions before signing up. Note that these plans do not offer insurance coverage, and you remain responsible for paying your service provider.
Pros
Budget-friendly: The annual fees for dental savings are lower than those required for dental insurance.
No waiting period: You will usually have to wait a specified period before claiming from dental insurance. You can start saving on your dental savings account as soon as you enroll.
Easy to understand: Dental savings costs are predictable, and the claims are easy to process.
No limits or deductibles: There are no limits to how much you can save. You don’t have to reach a deductible before coverage starts. Dental savings plans may offer discounts on cosmetic dentistry or orthodontics excluded by dental insurance.
Vast networks: Most plans have large networks of dentists, so it is easy to find a dentist close to you.
Cons
No coverage: You will receive discounted prices on a dental savings plan. These do not offer dental coverage, so you will still have to cover some of the costs.
Upfront payment: You must pay the fee whether or not you use the service.
Network dentists only: You must use dentists in the network to claim discounts
Excluded services: Savings plans do not cover all dental services.
What Is Dental Insurance?
Like all health insurance plans, dental insurance shares risk between members. Members pay monthly premiums. In return, the insurance company covers a percentage of the costs and will only cover some dental procedures. What the plan covers will depend on the plan you have chosen. Factors like coverage levels, copayments, deductibles and annual limits will differ.
Pros
Lower dental costs: Dental insurance can significantly reduce your dental costs, especially for routine procedures like checkups.
Preventative care incentives: Many insurance companies offer full coverage for preventative dental care.
Reduce the cost of major procedures: Major procedures like root canal treatments and crowns are expensive. Dental insurance can reduce the impact of such costs.
Spread the cost: It is easier to budget by paying a monthly premium rather than covering dental costs as they happen.
Cons
Expensive: Dental insurance may be expensive, especially for plans with higher coverage
Exclusions: Dental insurance will not cover all dental procedures. Insurance often excludes cosmetic dentistry and orthodontics. You’ll need different insurance for orthodontic care. The insurance may also exclude preexisting dental conditions
Network limitations: Some dental insurance may require you to use the services of a subscribed dental network
Cost sharing: You may still have to pay some of your dental costs by way of deductibles and copayments
Similarities
Though they differ in many ways, there are some similarities between dental insurance and dental savings plans.
Objective: Both programs aim to make dental costs more affordable. They do this by reducing and spreading dental care costs
Provider network: Both programs may support a service provider network, though some dental insurance companies do not
Payment responsibility: You will take responsibility for some of the costs, whichever option you take.
Focus on preventative care: Both options encourage preventative care by offering lower costs for these services.
Differences
Choose wisely between dental savings plans and dental insurance — you’ll need to factor in the following differences.
Coverage
Though procedures and discounts may differ, dental savings offers dental service discounts.
Depending on your plan, dental insurance covers a range of dental services at various coverage levels.
Waiting Period
You will not have to wait until the discounts take effect with a dental savings plan. But if you opt for dental insurance, you may have to wait for coverage for several procedures.
Deductibles
The deductible is the amount you must pay before your dental coverage takes over.
Unlike dental insurance, there are no deductibles on a dental savings account, but you make discounted payments for the services.
Annual Limits
Maximum coverage levels may apply to dental insurance. What the maximum coverage is will depend on the plan you take. There are no annual limits on dental savings plans.
In-Network Requirements and Limitations
Dental savings plans partner with networks of dental service providers. These medical professionals offer discounts on various processes and procedures. Members must use the network to benefit from the discounts offered.
Though some dental insurance companies demand the use of in-network dentists, dental preferred provider organization PPO plans do not require members to use designated practices.
| Features | Dental Savings Plan | Dental Insurance |
| Deductible | No | Yes; under most circumstances |
| No waiting period | Yes | No; There are often no waiting periods on preventative services |
| Annual maximum | No | Yes |
| Available as part of health insurance plan | No | Yes |
| Saves money on dental care costs | Yes | Yes |
| Cosmetic dentistry discounts | Yes | No |
| In-network requirements or limitations | Yes; must see a dental care provider who accepts your discount plan | Sometimes; dental PPO plans do not require in-network use |
Average Costs
On average, dental savings plans cost considerably less than dental insurance. Still, the returns are also lower, so you must weigh your dental healthcare needs against your budget. If you opt for the dental savings plan, you could pay more for unforeseen dental emergencies. If, however, your dental needs are preventative and routine, a dental savings plan could save you money.
| Plan Type | Average Monthly Cost | Average Yearly Cost |
| Dental savings plan | $8.30 - $16.60 | $100 - $200 |
| Dental insurance | $29 - $60 | $350 - $720 |
How to Choose Between a Dental Savings Plan or Dental Insurance Plan
You don’t have to pay for dental treatment all by yourself. Here’s a guide to help you choose between a dental savings plan and dental insurance.
Choosing a Dental Savings Plan
Consider the following when shopping for a dental savings plan:
Saving percentages: Dental savings plans offer a range of savings for different dental procedures. Understand what discounts are offered and choose the plan that best suits your needs.
Covered treatments: Dental savings plans will provide a list of covered treatments. Make sure that the treatments you need are covered by the plan you choose.
Premium prices: Ensure that the discounts justify the price you’ll pay for your plan.
Choosing Dental Insurance
You must understand the conditions below before signing a dental insurance contract:
Waiting periods: Most insurance plans have a waiting period for treatment coverage of procedures like root canals and cavity repair. Know when your coverage kicks in to avoid expensive mistakes.
Deductibles: Choose a plan with a deductible you can afford.
Plan maximums: All dental insurance plans have a maximum coverage level. Choose the highest maximum level to make the most of your dental insurance.
Best Dental Insurance from Benzinga’s Top Providers
Find a suitable dental insurance company from the table of the top providers below.
- Best For:Young adults and families with children and teenssecurely through Guardian Dental Insurance's website
Choose the Best Dental Plan for Your Needs
A dental savings plan versus dental insurance is a personal choice. It’s a choice you’ll make after considering what’s offered and weighing it against your dental healthcare needs and budget. A dental savings plan is cheaper than dental insurance, but dental savings do not provide full insurance coverage. If you are likely to need expensive procedures, dental insurance may be the better option for you. Take the terms and conditions into account and get help for the procedures you need, when you need them.
Frequently Asked Questions
Can you have a dental savings plan and dental insurance?
You can use a dental savings plan and dental insurance together. You could use the dental savings plan to reduce your out-of-pocket expenses and the cost of procedures not covered by your insurance.
Is it cheaper to have dental insurance or pay cash?
This depends on your dental health and the relative costs of procedures in your area. If you have very few dental problems or procedures, cash may be cheaper.
Do dental savings plans cover preexisting conditions?
You will receive the discounts offered by your dental savings plan even if the condition is preexisting.
Dental Insurance Methodology
To determine the best dental insurance providers, we pored through all United States carriers. We winnowed the list by only including companies that have a wide coverage area and product offering. To further break down the list to the true best dental insurance providers, we gave weight to carriers that offer discounts, are available in all states and have multiple payment plan options.
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About Anna Yen
Anna Yen, CFA is an insurance and fintech writer with over two decades of professional finance and writing experience in roles within JPMorgan and UBS derivatives, asset management, crypto, and Family Money Map. She specializes in writing about personal finance topics ranging from investments, budgeting, debt management, credit, student loans, insurance, and retirement planning to real estate and cryptocurrencies. Her work has been published on sites like Quicken, the crypto exchange Bybit, Credit.com, and PropertyCasualty360.