Health Insurance for Realtors
Your income depends on commissions or the closing of sales on flipped properties, which can be very unpredictable. Your earnings can vary dramatically from month to month. And there may be long periods where you have little or no cash coming in.
Meanwhile, you’ve got business expenses like marketing and advertising to manage, licensing expenses, and realtor association and MLS fees to manage.
To survive and thrive as a real estate professional, you need to keep your expenses down. Especially for non-core things like health insurance premiums. So you can continue investing in core business functions like marketing and advertising, and meeting with clients and prospects.
One area where you can potentially significantly reduce expenses is in health insurance premiums.
According to the Kaiser Family Foundation, Obamacare-style health insurance policy now costs around $24,000 per year without a subsidy. So even a modest improvement in your monthly premiums is going to help a lot. Whether it’s traditional health insurance or an alternative like health sharing, you want a plan that protects you without breaking the bank.
In this guide, we’ll walk you through the best health plans for real estate professionals. We’ll look at the increasingly popular health sharing alternative and how it saves money. And we’ll look at how you can provide health benefits for your staff as you grow.
Health Insurance for Realtors vs. Investing in Your Real Estate Business
Let’s face it—health insurance premiums are high.
A traditional health insurance plan for a realtor’s family of four can easily cost $2,000 or more each month. That’s $24,000 per year. For someone with irregular income like a real estate agent, that’s a lot of money––especially if you don’t qualify for an ACA subsidy.
Now consider the ROI of that money. Spending $24,000 a year on health insurance might make sense if you have regular, high medical expenses. Or if you’re at high risk of illness or injury.But what if you’re generally healthy? Those premiums go to the insurance company whether you use the services or not.
Imagine instead taking a big chunk of that cash now going to outrageously high health insurance premiums, and investing it into your real estate business instead. You could boost your marketing, generate more leads, and close more deals. The ROI on a $24,000 marketing campaign could far exceed the ROI of unused health insurance premiums.
Compare Pricing on the Best Insurance Plans Available
Health Sharing: A Cost-Effective Health Insurance Alternative for Realtors
Health sharing plans can be a smart money-saving alternative for real estate professionals.
Especially if you are in good health and don’t qualify for a subsidy. Health sharing plans work by pooling your contributions with others in the plan to share medical costs.
Monthly contributions are often much lower than traditional insurance premiums.
Here’s why health sharing might be a good fit for you:
- Lower Costs: A health sharing plan for a family of four could cost between $300 and $600 per month—far less than traditional insurance before subsidies.
- Protection Against Catastrophic Medical Costs: Health sharing plans typically handle large medical expenses like hospitalizations, surgeries, and emergency care. These are the kinds of expenses that can be financially ruinous without protection. So this is a critically important consideration.
- Freedom of Choice: Health sharing plans usually allow you to choose any doctor or hospital, without the network restrictions that come with traditional insurance HMOs and PPOs. Health sharing plans allow you to see independent doctors, and don’t restrict you to an authorized care network of low-bidder doctors and providers.
When to Consider Health Sharing
Consider dropping traditional health insurance products and switching to health sharing if the following circumstances apply:
- You don’t qualify for an ACA subsidy, health sharing could save you thousands each year.
- You’re generally healthy and don’t anticipate frequent medical visits, the lower monthly costs of health sharing can make more financial sense.
- You want more control over your healthcare choices and prefer to avoid network restrictions.
Who Should Stick with Traditional Health Insurance?
While health sharing can save money, it’s not for everyone.
Here’s when you might want to stick with traditional health insurance:
- If you or a family member has a pre-existing condition that requires regular care.
- You want or need the subsidy available under the Affordable Care Act to make traditional health insurance affordable.
- If you need to take an expensive prescription drug.
Protect Yourself with Supplemental Coverage
Beyond basic health coverage, there are other types of insurance to consider as a real estate professional.
1. Long-Term Care Insurance: Long-term care insurance covers the cost of extended medical care in nursing homes or through in-home care providers. If you’re concerned about protecting your assets in the long run against the cost of long-term care, this coverage is essential.
2. Critical Illness Insurance: These valuable insurance policies provide a lump sum payment if you’re diagnosed with a severe illness like cancer, heart disease, or stroke. This money can help cover treatment costs, help you cover a deductible or coinsurance costs. It can also make up for lost income during recovery.
3. Accident Insurance: Accident insurance offers payouts for medical expenses resulting from accidents.
This is especially useful if you’re constantly on the go, traveling to showings or client meetings.
For example, car insurance typically provides only a limited benefit for treating injuries from car wrecks. An accident insurance policy can help step in and pay those out-of-pocket expenses that traditional insurance doesn’t cover.
4. Hospital Indemnity Insurance: Hospital indemnity insurance pays a fixed amount for hospital stays or surgeries, helping to cover gaps in your health sharing plan or traditional insurance. Or it can help you pay for childcare while you’re out of action.
Health Benefits for Your Real Estate Staff
If you have employees, providing them with health benefits can be a great way to attract and retain top talent.
Small businesses with fewer than 50 full-time employees aren’t required to provide health insurance, But offering benefits can still give you a competitive edge.
Here are a few options:
1. Traditional Health Insurance: You can offer a group health insurance plan to your employees. While this can be more expensive, it provides comprehensive coverage. It may be necessary if your staff includes individuals preexisting conditions.
You can also help employees fund Health Savings Accounts if they enroll in a qualified high-deductible health plan, or HDHP. These valuable accounts allow your workers to pay for healthcare with tax-free dollars.
They also save payroll taxes on any amounts you contribute.
2. Health Sharing Plans: Just like with your own coverage, you can offer health sharing as a lower-cost alternative for your employees. Many health sharing plans allow employers to set up group accounts, providing affordable coverage that protects against major medical expenses.
3. QSEHRA (Qualified Small Employer Health Reimbursement Arrangement: A QSEHRA allows you to reimburse your employees tax free for health insurance premiums and medical expenses.
This gives employees the flexibility to purchase their own health insurance on the marketplace while still receiving a benefit from you. You decide how much to contribute each month, and employees can use the funds to cover the cost of their premiums or other qualified medical expenses.
Learn More: The Best Health Benefit Strategies for Small Employers
Compare Pricing on the Best HealthShare Plans Available
Health Insurance for Realtors Conclusion
Choosing the right health plan as a real estate professional is about more than just coverage.
It’s about managing your cash flow and investing in your business wisely.
Health sharing plans can save you thousands of dollars each year, giving you the flexibility to reinvest that money in growing your real estate business. And if you have staff, offering benefits like health sharing or a QSEHRA can make your business more attractive to employees. Without breaking the bank.
For personalized guidance in selecting the best health plan for you and your business, contact an HSA for America Personal Benefits Manager today. They can help you explore your options, compare costs, and find the perfect plan to protect your health and your bottom line.
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