Health Insurance for Realtors®: Your Go-To Guide  For most real estate agents, securing affordable and reliable health coverage isn't as simple as signing up through an employer. Almost 90% of Realtors® work as independent contractors, according to the National Association of REALTORS®. Because of this, it's often up to the Realtors® to find their own insurance, which can be overwhelming!  Health insurance for Realtors® is not a one-size-fits-all solution. Factors like unpredictable income, family needs, regional providers, and tax advantages all influence which plan makes the most sense. In this guide, we’ll help break down your options, simplify the jargon, and arm you with the knowledge to make an informed decision.

Unique Challenges in Health Insurance for Realtors®

Unlike traditional employees, most Realtors® juggle fluctuating incomes, irregular schedules, and the lack of HR-provided benefits. This can mean: 

• No group health coverage by default 
• Higher out-of-pocket expenses for individual plans 
• Difficulty securing coverage for dependents 
• Managing costs during slow-selling seasons 
• Navigating enrollment periods on your own

Knowing these challenges upfront helps in choosing a plan tailored to a your unique lifestyle as a Realtor®. 

Types of Health Insurance Plans Available to Realtors® 

As a Realtor®, you have many options for insurance coverage. However, it can be hard to understand them all. Below, we break down some of the most common health insurance options.

Individual Health Insurance Plans Through the Affordable Care Act (ACA)

The Affordable Care Act, also know as "ACA," is a comprehensive healthcare reform law passed in March of 2010. With the ACA, you can visit the Health Insurance Marketplace® to shop for available private policies.

According to the ACA website, the Health Insurance Marketplace® is a “service available in every state that helps individuals, families, and small businesses shop for and enroll in affordable medical insurance.” 

One of the stipulations of the ACA requires every state to have an official health insurance exchange or Marketplace. These Marketplaces are a great resource to shop and browse for potential health insurance plans. For example, Minnesota's official Marketplace can be found at MNsure.org. On this one website, Realtors® can browse health insurance plans, view common FAQs, enrollment deadlines, and even apply for financial assistance.

Not a Realtor® in Minnesota? Find your state's official health insurance marketplace here.

National Association of REALTORS® (NAR) Association Health Plan

As a Realtor®, you are a member of the National Association of REALTORS®. This gives you exclusive access to view and shop for group health insurance plans. You can browse a collection of plans on NAR's special site dedicated to insurance for realtors®, REALTORS® Insurance Place. REALTORS® Insurance Place, according to NAR's website, "provides plans for you and your family, including health coverage options, group dental, group vision, and group life insurance, plus a variety of wellness solutions including 24/7/365 telemedicine – all with exclusive benefits just for NAR members."

Broker Insurance Plans

While there are real estate brokerages of all shapes and sizes, the larger ones may offer health insurance for Realtors®. National brokerage companies like Coldwell Banker and RE/MAX are two examples of this. In this case, a Realtor® would simply browse the health insurance plans offered by their brokerage and choose the one that best suits them and/or their families. 

Short-Term Health Insurance Options 

Short-term plans cover you for a limited period, typically 30 days to 12 months. They’re more affordable but may exclude essential benefits like maternity care or mental health services. 

Best for: Realtors® between brokerages or waiting for annual ACA enrollment.

Health Sharing Ministries: Pros and Cons 

Faith-based health sharing programs offer a community approach to covering medical expenses. While not technically insurance, members share costs, often at lower rates. 

Cost of Health Insurance for Realtors®

Health insurance for Realtors® can vary greatly by the state in where you do business. Minnesota is among the least expensive states. For example, the average benchmark premium (second-lowest-cost silver) plan for a 40-year-old is (source): 

• New Hampshire: $325
• Minnesota: $363
• Maryland: $365
• Virginia: $372
• Indiana: $382

Conversely, the most expensive states include:

• Vermont: $1,277
• Alaska: $1,045
• West Virginia: $919
• Wyoming: $871
• New York: $790

How Realtors® can Apply for Health Insurance

Working with a Licensed Health Insurance Broker

Finding the right health insurance plan for you can be daunting. To help you through the process and to ensure that you find the plan that is right for you, consider working with a Licensed Health Insurance Broker. There are so many options out there for you to explore!

Joining a Realtor® Association Plan

If you are considering taking advantage of one of the NAR healthcare plans, then take a look through their REALTORS® Insurance Place and weigh your options. 

The best thing about both of these options is that you can choose your own, go down a different path (i.e., applying for an individual health insurance plan via the ACA Health Insurance Marketplace shop), or even combine them! For example, you can take a look at the plans offered through the National Association of REALTORS® and then consult a licensed Health Insurance Broker to help you weigh your options.

Tax Benefits and Deductions for Realtors® Health Insurance

Self-Employed Health Insurance Deduction

Self-employed Realtors® can deduct all their health insurance premiums. This includes premiums for dental and long-term care. They can deduct these for themselves, their spouses, and their dependents. This deduction is taken on Form 1040, Schedule 1, Line 17. 

To be considered self-employed, you must meet one of the following qualifications:

1. a sole proprietor,
2. a partner in a partnership,
3. a member of a limited liability company (LLC),
4. or a shareholder in an S corporation (owning more than 2%).

This can be slightly confusing for Realtors® if you don't know which bucket you fall into. So, let's go over some examples.

If you have the option to sign up for an employer-subsidized health insurance plan through your brokerage as mentioned above, then that means you are not eligible for this tax deduction.

If your partner or spouse has a full-time job and you could be added to their health insurance plan but you opt-out to purchase your own, then you are not eligible for this tax deduction.

If you are a Realtor® who is not offered health insurance through their brokerage, then you may be eligible for this tax deduction.

Consult your tax or financial advisor to determine eligibility for the tax deduction.

Common Mistakes Realtors® Make When Choosing a Plan

So, you're ready to find the health insurance plan that is right for you. Make sure that you don't make one of these common mistakes:

1. Overlooking Coverage Details
2. Failing to Compare Multiple Plans

Overlooking Coverage Details

Failing to read the fine print can lead to unexpected costs.It's crucial to understand deductibles, out-of-pocket maximums, and network restrictions.

Failing to Compare Multiple Plans

Settling for the first available plan may not yield the best value. Comparing multiple plans ensures better alignment with personal health needs and financial situations.

Protecting Your Health and Career with the Right Insurance

Navigating health insurance as a Realtor® requires careful consideration of various plans, costs, and benefits. By understanding available options, leveraging tax deductions, and seeking professional advice, realtors can secure coverage that safeguards their health and supports their professional endeavors.