Why dental insurance makes sense

For a long time I was not a big believer in dental insurance for myself. Only had a couple cleaners per year and maybe a cavity here and there.  Just pay for it out-of-pocket. Why buy dental insurance?

Unlike medical insurance when you can conceivably have claims of millions of dollars, dental insurance has annual maximum of typically $1,000.  Again why buy insurance for a 1,000 max?

As time goes by and you keep track of your expenses and before you know it, you have $400 of dental expenses per year and that is without anything major.  At the end of the year when you do your taxes, you realize that none of these expenses are deductible since none of it exceeds 7.5% of AGI.

If I were to take these same dollars that I spend on annual maintenance cmdav twitterand buy an insurance product, all of thse dollars become tax deductible as premiums.  In essence I would reduce the cost of my annual maintenance by a third by transforming these after tax non-deductible dollars to tax deductible premiums.  In addition if I have any more extensive dental work, I can take advantage of the $1,000 annual maximum. 

It makes even more sense when you have a wife and children, who are also incurring dental expenses.  On the other hand, if you are spending nothing on dental care then this makes no sense.  We even market one product, Central Mass Dental and Vision, that will reimburse up to $150 for eyeglasses tax-free!

Bottom line don’t look at dental insurance as your conventional insurance, but as a way to make your current expenses tax decutible.  We can write groups as small as one employee.


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