Most people don’t start to think about dental insurance until they have a toothache. They put it off until the pain is unbearable and they can’t take it anymore.
When these people finally get around to looking into dental insurance, many are surprised to hear that most policies will not help with their problem. Since the problem that they are having exists before they have the coverage, it is considered a pre-existing condition.
Dental insurance plans normally have a waiting period on these preexisting conditions, and will not help you pay for major dental services like crowns, root canals or dentures for the first 12 months of the coverage.
If everyone could wait until they need expensive services and get immediate help, then there would be no reason for anybody to buy insurance ahead of time.
Insurance companies make money by administering risk pools. The policyholders all pay into the pool but not all of them will need the benefits. Those who don’t make a claim have still made a wise decision to pay for the coverage as long as they are paying affordable premiums over time to protect themselves from being hit with disastrous charges all at once.
Imagine if a dental insurance plan would pay $1000 in benefits and the only people to sign up were those who needed the benefits right away. The cost of each policy would have to be $1000. Actually, it would cost even more. Since the insurance company would have to charge fees to administer the risk pool, all the policy owners would be losing money and there would be no reason to pay for the insurance at all.
So, if you already have a need for expensive dental services like crowns and root canals, it’s too late to buy dental insurance. But it’s not too late to sign up for a dental discount plan.