It seems like one of the most simple things in the world, the kind of payment you make every month without even thinking about it: dental insurance. Many people view it along the same lines as health insurance, and rightly so, as an essential payment that must be made to protect the health and well being of yourself and the people you care for.
However, living in the age of austerity is making many people look again at their monthly outgoings and see what exactly they are finding the money for every month. With many payments passing the unavoidable test – rent or mortgage, grocery shopping, health shopping, taxes and anything to do with raising children — it can bring extra scrutiny down on something like dental insurance. This may be dismissed as people being too obsessed with cutting corners to actually see the big picture, but could there actually be something to the idea that maybe dental insurance is one of those things that you can let slide?
The primary cause of this is the simple truth that it often costs more to pay in to a dental insurance plan than you will ever really be able to recoup, especially if you suffer from claims being rejected or downgraded as so often happens. With the rules for payouts all the more stringent and usually involving an upfront fee of some sort anyway, it may be time to consider if this is actually a financial product you are benefiting from.
Begin by calculating up the cost of the payments you have made to the plan, and then subtract the average cost of the things you have claimed for in that time. Don’t forget to factor in any advance fees or excess you have had to pay. Now you should be beginning to see if it’s really worth it, especially if you extend the math five years in to the future. Does it still make sense?
In some cases it may well do, and that’s absolutely understandable, but if you find yourself paying in far more than you have had chance to take out then it may be worth pursuing other options and seeing if you can find a better deal. Always make financial decisions carefully and with thorough research, but on this occasion it may be worth the investigation.