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In this article:
- What’s the best dental insurance for self-employed people/freelancers?
- Tips on choosing dental insurance
- Advantages of dental savings plans (also known as dental discount plans)
One of the biggest challenges for anyone who is self-employed or freelances, is figuring out how to handle healthcare expenses. Finding affordable options can be difficult when you’re not part of a group plan.
With a little time and effort, you can find a good healthcare plan, especially if you can access a group plan through a professional association or other organization. But finding a cost-efficient option for dental care is not always as easy.
Let’s review the options and look at the differences between dental savings plans versus dental insurance so you can discover the best dental plan for you.
Is dental insurance worth it for self-employed people?
In general, having insurance is a big help when your income is unpredictable, as it is for many freelancers and self-employed people. For many of us, it seems that all your clients pay at once, or everyone’s payment is delayed. Being insured makes it easier to avoid unpleasant financial surprises. And there are scenarios where you really want to make sure you’re insured, such as:
If you have children:
You will probably want to have dental insurance or an alternative plan to make sure their dental health needs can be met. Dental insurance is great for making preventive care – like regular checkups and cleanings – very affordable. It’s critical for kids to see the dentist regularly, so that they can do their best in school and develop the foundation for good health right from the start.
If you, your spouse or dependent/s have oral health issues:
Dental insurance typically has an annual spending limit of $1,500, after that you have to pay out of pocket. If, for example, you need just one root canal and a crown, you can max out your insurance for the year.
Check your insurance policy for specifics, but generally you’ll have to wait months after purchasing insurance before your coverage activates for restorative treatments:
- Basic restorative procedures – fillings, simple extractions, deep cleanings, etc. – usually have a three-month waiting period.
- Major restorative procedures like crowns, root canals, bridges, oral surgery and dentures often have a waiting period of six months to one year.
- During the waiting period, you pay out of pocket for dental care, and you have to pay your insurance premiums as well.
Can self-employed people and freelancers deduct the cost of dental insurance?
The IRS does allow freelancers to deduct 100% of their health insurance premiums (including dental) for themselves, spouses, and their dependents – but there are specific conditions you have to meet to do this. NOLO.com provides an overview of how this deduction works – and note that is only applies to your federal, state, and local income taxes, not to your self-employment taxes.
It’s important to get professional guidance from someone who understands your financial situation and business. See an accountant, tax preparer or another expert before you factor the health insurance deduction into your financial planning. Also ask about potential deductions for other healthcare cost reduction options such as dental savings plans.
What is the best dental insurance for self-employed people?
There is no single best dental insurance. The best plan is the one that works best for you.
Freelancers typically cannot take advantage of group rates which make traditional dental insurance affordable. You also don’t have an HR team to sift through all the available options. But since you’re purchasing your own insurance, you can choose a plan that really fits your needs. At DentalPlans.com, we make comparison shopping easy. Use our Online Plan Finder to receive a personalized dental plan recommendation in minutes or call our expert team at 1-833-735-0399.
In general, you can choose from three types of insurance:
DHMO Insurance Plan (Dental Health Maintenance Organization)
A DMHO plan is the least expensive type of dental insurance. DMHOs are somewhat restrictive, you need to choose a primary dentist who will manage your care and refer you to specialists, and you typically must stay within the network for your dental care. There is no annual maximum spending limit and no waiting periods with DHMO plans, but there may be limits on treatment frequency (how often you can get a bridge or dentures replaced, for example). Before you purchase, make sure that you like the dentist/s in the DHMO network, and you ask how long it typically takes to see a dentist – some networks can be overcrowded, leading to delays in getting appointments.
Best For: Families/individuals on a budget, people who don’t want to wait 6-12 months for restorative care.
DPPO Insurance Plan (Dental Participating Provider Network)
DPPO plans, often called “PPOs” are widely accepted at dental practices. You will save more with in-network dentists, but you can usually go out-of-network. You don’t need a referral to see a specialist, but you will usually need to wait 6-12 months for coverage to activate for anything other than basic, preventive care. Typically, there is a maximum spending limit of $1000-$1500 annually- which can be a challenge if you need more than basic care. Before you sign up for a PPO plan, make sure you can afford to pay out of pocket for a dental emergency that exceeds your annual spending limit.
Best For: People who want the flexibility to choose their dentist and dental specialists, people with good oral health who primarily need preventive care, parents who want coverage for their children.
Dental Indemnity Insurance Plan
This is the most expensive type of dental insurance and is hard to find outside of group plans. It’s similar to a PPO but often has an annual maximum spending limit of $2,500 or $3,500+. Plan members pay dentist bill in full and are later reimbursed a set amount. Some plans do impose a waiting period for restorative care. It can be a good choice if you need costly treatments and can afford to pay the full rate out of pocket for your dental care and wait for reimbursements.
Best For: People who need a higher spending limit than a PPO provides.
Best insurance alternative for the self-employed and freelancers – dental savings plans
Dental savings plans, also known as dental discount plans, are a trusted alternative to dental insurance. Plan members report saving an average of 50%* annually on their dental care. You can access these savings at any of the thousands of dentists nationwide that accept dental savings plans – over 70% of US dentists.
Dental savings plans offer several unique advantages to self-employed people and freelancers when compared to dental insurance.
- You can use a dental savings plan whenever you need to – there is no annual maximum or lifetime spending limits.
- Unlike dental insurance, there’s no waiting period, you get reduced rates on all included dental treatments within 72-hours of joining.
- Save on treatment for existing dental health issues.
- Many plans include additional savings on prescriptions, vision and hearing care and other healthcare services.
If you’d like help choosing a dental savings plan or dental insurance, give us a call at 1-833-735-0399. DentalPlans.com is the largest dental plan marketplace, with over 25 plans from the most trusted brands in healthcare. Our team makes it easy for you to find the plan that fits your needs and budget best.
Want to know right now how much you could save with a dental savings plan? Use our calculator below for a quick peek.
*Discount health program consumer and provider surveys indicate average savings of 50%. savings may vary by provider, location, and plan. savings range from 10-60% off.