Individual Health and Dental Insurance

If you work for a large employer, you may have the option of participating in a group health or dental plan. These plans can be helpful, but if you do not have access to one, you can always buy the coverage on your own. While similar, individual health and dental insurance plans are a little different than group plans.

No Subsidized Premiums

• When switching from a group health insurance plan to an individual plan, the first thing you may notice is that the premiums are no longer subsidized. When you work for an employer, you typically get all or part of your health insurance premiums paid for. Once you make the switch to an individual health insurance plan, you will have to pay the entire bill for your insurance premiums. This can lead to premiums that are much higher than what you pay with a group plan.

High-Deductible Plans

• When you get an individual health insurance plan, one of the options that you have is to purchase a high-deductible health insurance plan. With a high-deductible plan, you can participate in a health savings account. This allows you to set aside money on a pretax basis for your out-of-pocket medical expenses. In addition to gaining access to a health savings account, you can also lower your insurance premiums by taking a higher deductible on your policy.

Individual Dental Plans

• Many people who do not work for an employer that offers dental coverage end up avoiding coverage because of the high cost. Premiums for regular dental coverage can be prohibitive, which may lead you to explore some other options when it comes to getting dental care. You could get an indemnity plan, which allows you to choose your own dentist and simply pay a discounted fee for each service. Another option to consider is a dental preferred provider organization (PPO). With this option, you can access a select network of dentists.

Underwriting

• When you can participate in a group health or dental plan, the underwriting process is very simple. If you are part of the group, you are accepted for the same rate as everyone else. By comparison, when you shop for individual insurance, it will not be this simple. The premiums will be based on your age, your health, your credit history and other factors. In some cases, you may be excluded from coverage from these companies.