What Is Indemnity Dental Insurance?

Pros and cons of indemnity dental insurance

An indemnity dental plan offers flexibility, but it may not be the best choice for everyone. Understanding the pros and cons can help you determine if an indemnity dental plan is right for you.

Pros

• Freedom to choose any dentist: With an indemnity dental insurance plan, you’re not limited to a specific network of providers. You can continue seeing your current dentist or choose a new provider at any time.
• No referrals required: You can also visit specialists without getting a referral from your primary dentist.
• Consistent coverage across providers: Since there are no network restrictions, your plan may reimburse covered services at a similar level regardless of where you receive care.

Cons

• Higher premiums: Indemnity dental insurance plans typically cost more than PPO or HMO plans.
• Higher upfront costs: You’ll usually need to pay for services in full before receiving reimbursements.
• UCR limits: If your dentist charges more than your insurer’s UCR rate, you’ll pay the difference.
• More administrative work: You may need to submit claims yourself, which can add extra steps to securing reimbursements.

Other dental plan options to consider

If an indemnity dental plan doesn’t fit your needs, you can choose from several other types of dental insurance. Here are some popular alternatives that may offer more predictable costs.

PPO dental plans

Preferred Provider Organization (PPO) plans offer a network of dentists with negotiated rates. You can still go out of network, but you’ll typically pay less when you stay in network.²

PPO plans often cover the full cost of preventative care, as well as 50% to 80% of basic and major services. Their premiums are typically lower than indemnity plans but higher than most other plan types. Additionally, you may have to meet a deductible before coverage kicks in.

Annual maximums may limit your yearly PPO coverage. Even so, PPOs balance flexibility and cost, making them one of the most popular dental plan options.³

HMO dental plans

Health Maintenance Organization (HMO) plans typically have lower premiums than indemnity dental insurance plans and PPOs. However, they require you to choose a primary dentist and get referrals for specialists. These plans may work well if you want to keep costs low and don’t mind using a provider network.

Point-of-service (POS) plans

POS plans combine features of PPO and HMO plans to offer a middle ground between flexibility and affordability.⁴ You may need a primary dentist and referrals, but you can still visit out-of-network providers at a higher cost.

Dental discount plans

Dental discount plans aren’t insurance, but they can still help reduce your dental care costs. With these plans, you pay a membership fee in exchange for discounted rates at participating dentists.⁵ A dental discount plan may be a good option if you want lower upfront costs and don’t need full insurance coverage.

Get a quote for Aflac dental insurance

An indemnity dental plan can offer flexibility and control over your care, but it often comes with higher costs and more paperwork for claims submission.

If you’re looking for a more predictable and cost-effective option, Aflac offers network dental insurance with flexible coverage levels. These plans cover many preventive, basic and major services. You can also use our supplemental dental insurance to help cover out-of-pocket expenses your primary plan doesn’t cover.

Speak with an Aflac agent today to explore your options and find coverage that fits your needs and budget.

Get Started