Do Real Estate Agents Get Health Insurance?

Real estate agents spend their days assisting others through one of the largest purchases of their lives: home buying. But when it comes to coordinating their own health care benefits, things are a little more complicated. In contrast to traditional workers, real estate agents tend to be responsible for managing their own benefits, including health insurance. So do agents really obtain coverage, and what are their options?

Let's break down how health insurance works for real estate professionals and what you can do to make sure you're protected.

The Independent Contractor Dilemma

The majority of real estate agents work as independent contractors, not as salaried workers. That implies that they do not get benefits such as health coverage from an employer. Rather than being issued a W-2, agents usually are in a 1099 tax classification, which provides them with greater freedom but puts the responsibility of obtaining insurance on their own shoulders.

This arrangement provides agents with the autonomy to practice on their own terms, but it requires them to make provisions for protecting their own health and finances ahead of time.

Do Brokerages Offer Health Insurance?

Some big brokerages, particularly ones with thousands of agents, might offer access to group health insurance plans. But this is more the rule than the exception. Smaller brokerages usually leave it up to the agents to get their own coverage.

All that being said, certain brokerages collaborate with third-party providers to provide discounted insurance options or access to digital health platforms. These perks are typically voluntary and have the agent pay the full fee out of their own pockets.

Health Insurance Options for Real Estate Agents

Unless your brokerage provides one, there are still a few options to consider.

Most agents go to the ACA Marketplace, where they can shop for personal coverage through Healthcare.gov or state-based exchanges. The silver lining is that subsidies exist for those based on income, which can reduce monthly premiums to much less than anticipated, particularly in years when commissions are variable.

Private insurance is the other option. These policies, purchased directly from insurers, tend to have larger networks or greater freedom but typically cost more. They can be a good choice for agents who are not eligible for subsidies or prefer to have coverage outside of the ACA alternatives.

Others also consider short-term policies, which can offer coverage for a short duration. These plans, however, do not include pre-existing conditions and exclude most basic medical treatments. They're best used as a temporary fix not an ongoing solution.

Membership in a real estate association can open more doors. For instance, National Association of Realtors (NAR) members have access to the REALTOR® Benefits Program, which provides agents with access to health, dental, and vision plans. Similar programs are also available through local boards. These association-plans tend to be less expensive and more industry-focussed for professionals.

Another less common but useful tactic is working with a Professional Employer Organization (PEO). These companies enable independent contractors to become part of a larger benefits pool, much like regular employees. Agents can get group health insurance, vision and dental coverage, and even retirement plans through a PEO. Though there are administrative charges, the advantages often surpass them.

And for the married or domestic partner with job-based insurance, becoming covered under their plan is often the simplest and cheapest route. It's worth comparing the premium cost of being added on to other plans to determine which will provide the best value.

Healthcare sharing ministries have also become popular. These community-based alternatives have members paying for other members' medical bills. They are usually faith-based and not legally defined as insurance, so there is no legal obligation they'll pay your bills. Affordable, but with significant risk.

There’s one major silver lining to buying your own health insurance: the tax benefits. Self-employed agents may be eligible to deduct monthly premiums, contributions to Health Savings Accounts (HSAs), and other qualified medical expenses. These deductions can significantly reduce taxable income, so it’s wise to speak with a tax professional to ensure you’re getting all the available benefits.

Beyond Medical Insurance: Dental, Vision, and Mental Health

Coverage for health doesn't cover everything you require. That's why agents who buy their own coverage should also think about dental and vision coverage. Cleanings, glasses, and even orthodontics are costly without insurance.

Mental health coverage is another consideration. ACA plans generally cover therapy and psychiatric visits, but not all private policies. Always review what is covered before enrolling.

Why the Affordable Care Act Matters

Most agents are not aware that they are eligible for financial assistance under the ACA. Due to irregular real estate income, agents can qualify for subsidies in lean sales years, reducing their premium payments by a great deal. ACA plans are structured into metal levels Bronze, Silver, Gold, and Platinum with varying balances of monthly premiums and out-of-pocket expenses.

The key is knowing your income and estimating it carefully during enrollment to avoid surprise tax bills later.

Common Challenges Agents Face

Health insurance for solo practitioners is not always straightforward. Many agents face high monthly rates, restricted provider networks, or convoluted policy information. Such obstacles require taking the time to shop around, read the fine print, and not be lured into signing up for a plan solely because it appears inexpensive at first glance.

How to Choose the Right Coverage

Getting the correct insurance begins with knowing your own healthcare needs. See if your favorite physicians are in-network, examine the deductible and out-of-pocket limit, and determine how much you anticipate using your coverage. Don't simply pay attention to the premium, look at the total cost of the plan.

Agents who sat down to shop around discovered robust coverage through the ACA or associations. Others, sadly, waited too long or did not buy coverage at all, and soon found themselves with steep medical bills when they contracted a surprise illness or injury. Their experiences are a powerful reminder that health coverage is not something to procrastinate about.

Final Thoughts

Though real estate agents usually don't get health insurance as a standard perk, that doesn't mean they have to be without it. From ACA policies to private payers, associations, and even PEO partnerships, there are many different ways that agents can get covered. It may take some additional effort, but the payoff, peace of mind and financial security is well worth it.

Health insurance may not be the most glamorous aspect of your career in real estate, but it's one of the best investments you can make in yourself and your business.

Ready to Get Expert Advice?

Don't know where to begin? Talk to a Savvital advisor today for one-on-one assistance with making sense of your options and selecting a plan that meets your needs and your budget.