So if you sign up for dental insurance January 1st and use up your maximum benefits (say $1,500) by February 12th, what happens if you don't keep making monthly payments the rest of the year? Not scamming just curious and subsequently, what keeps you from (other than morality) from signing up on February 13th with a new company do you can start using your insurance again before maximizing it then dropping coverage?
Will you get blacklisted or in legal/civil troubles?

If this is through an employer, most employers only allow changes once a year during open enrollment.

Also, some plans have waiting periods before you can do major surgery/procedures that cost a lot.

No it's private. The stimulus for my inquiry is that this month my "monthly" premiums went up so I thought hmm this company doesn't seem to be bound to any contract so why would I automatically pay more if I can't get them to make any payments to a dentist until 2020? Of course the lower negotiated rates are a benefit but that's it until January 1.

You'd have to read the terms of your payment plan, but I'm sure it's set up just like any other financing arrangement. It's likely a 1 year policy, and if you cancel, you owe any prorated claims they pay.

Just my assumption, I'm sure they'd pressure collections just like any other creditor.

cjsag94 said:

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You'd have to read the terms of your payment plan, but I'm sure it's set up just like any other financing arrangement. It's likely a 1 year policy, and if you cancel, you owe any prorated claims they pay.

Just my assumption, I'm sure they'd pressure collections just like any other creditor.

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From the Texas Insurance Consumer Bill of Rights:

"You have the right to cancel your policy at any time and receive a refund of the remaining premium. The refund will be paid to you unless your premium was financed through a premium finance company. In that case, the refund will be paid to the premium finance company to reduce the amount you owe on your loan."

I guess it comes down to how they structure it. Might as well just call and talk to them about cancelling.

If people only enrolled in insurance when they needed it, and dropped it when they didn't, you get adverse selection which is terrible for the plan. This is particularly a risk with dental insurance as the need for it is fairly predictable.

For that reason, there may be a waiting period of a year or two before they pay for expensive procedures. So, if you drop it now and are not covered for a while, you may have to pay premiums for a couple of years before the insurance company will cover large procedures.