Individual vs. Employer-Sponsored Dental Insurance Explained

Posted on May 22, 2025 in Insurance

Dental insurance is a wise investment for your oral health and your wallet. Understanding the differences between types of dental insurance plans will help you get the most out of your benefits.

The two most common types are employer-sponsored (group) dental insurance plans and individual dental insurance plans. While both plans help with routine care and lowering the costs of procedures, there are a few important differences between them.

What is individual dental insurance?

Individual dental insurance is a plan that you purchase for yourself and/or your family directly from the insurance provider. Self-employed individuals, retirees, freelancers, part-time workers, or anyone without access to employer-sponsored dental benefits are great candidates for individual dental insurance plans.

Signing up is an easy process. Choose a plan that fits your needs and budget, pay a monthly premium, and in return you get access to benefits like cleanings, exams, and discounts on more expensive treatments.

Just keep in mind that people enrolled in an individual dental insurance plan are responsible for the full cost of the premium and any additional out-of-pocket costs.

What is employer-sponsored (group) dental insurance?

Employer-sponsored dental insurance is offered through a workplace or sometimes an association. For these plans, the employer usually handles the setup and negotiates on behalf of their employees. If they choose, employees can enroll in the group plan, often at a lower cost than buying individual dental insurance. 

Pro tip: Employees generally enroll during a specific period, such as open enrollment or when first hired.

Key differences at a glance

Here are some differences to consider when deciding which dental plan is right for you.

Individual dental insurance plans:

• May have slightly higher premiums
• Offer more flexibility in choosing providers and benefits
• Stay with you even if you change jobs
• Great for people without access to employer coverage

Note:  Individual dental insurance plans can vary. Be sure to review your specific benefits for detailed information.

Employer-sponsored dental insurance plans:

• Usually cost less (since employers may cover part of the premium)
• May have limited options for providers or benefits (plans are pre-set)
• Typically end when you leave your job
• Ideal if you’re looking for affordable, convenient coverage through work

Note:  Employer-sponsored dental insurance plans can differ, so it’s important to review your specific plan details to understand your coverage.

Which dental insurance option is right for you?

Choosing between individual and employer-sponsored dental insurance comes down to your personal circumstances and needs.

If you have access to an employer-sponsored plan and want more affordable =coverage, an employer-sponsored dental insurance plan may be a good fit. However, if you need more flexibility, are self-employed, or want coverage that stays with you no matter your employment, an individual dental insurance plan might be the better choice.

When comparing plans, consider:

• Your budget
• What procedures you may need
• Which dentists are in-network
• Whether you want coverage that stays with you long term

Bottom line: Having dental insurance is always the right choice

It doesn’t matter if you get coverage through an employer or have an individual plan. ; choosing to have dental insurance is always the right choice! Both individual dental insurance plans and employer-sponsored dental insurance plans offer valuable protection for your oral health and your wallet, but the right choice depends on your unique needs.

Take time to explore your options, review the benefits carefully, and choose a plan that fits your lifestyle, because a healthy smile is always worth investing in.

• Learn more about our individual dental insurance plans here.
• Learn more about our employer-sponsored dental insurance plans here.