Your dental insurance explained
Ever wondered how dental insurance works?
Dental insurance isn't an all-encompassing blank check for every desired service. Think of it as a Costco membership: it offers specific benefits at reduced costs. However, there's a twist. While Costco profits more as you shop more, insurance companies might profit less the more you use your coverage.
Remember, we prioritize you and your family's needs above all.
Premium = membership fee
Like a membership fee to access Costco's discounts, you pay a premium to your dental insurance to access their plan and benefits.
Copay = entry fee
Imagine if Costco had an entry fee. That's your dental co-pay each dentist visit.
Limitations
Costco offers only select products from specific manufacturers at discount. For example, Costco sells iPad Air from Apple for $400 while it may cost you $500 outside of Costco. However Costco does not sell iPad Pro from Apple or any tablets from Samsung.
Dental insurance gives discounts for specific services primarily with in-network doctors. Some out-of-network doctors may have limited benefits, while certain procedures, like veneers, might not be covered at all.
Deductible and ‘benefits’
Imagine if, after spending a certain amount at Costco, you earn special coupons for bigger savings.
With dental insurance, after you pay a certain amount (your deductible), you earn 'coupons' that gives discounts like 100% off of preventative services, 80% off of basic services, and 50% off of major services.
Annual maximum benefit
In our imaginary Costco, there's a limit to your annual savings from coupons. After saving, say, $1000, no more coupons are available that year.
Dental insurance operates similarly. These annual maximum benefits vary by plan. They might be bundled as a family maximum or be per individual. Once this cap is reached in a year, standard discounted rates apply.