Economic signs are worse than anticipated. While some argue the recession is coming, signs show it has already arrived. Meanwhile, FOX Business sees warning signs reminiscent of depression in an article titled, GDP report reveals ominous Great Depression warning sign not seen since 1932. Is a depression coming?
Whether a depression or recession, one thing is clear, insurance agents in the Medicare space are positioned to grow while other industries fall. Are you an agent? If not, you may want to consider becoming one – quickly.
Industries that Grow During Recessionary Times
There are certain industries that fair better than others during hard economic times. Why? They industries that provide services and products that one cannot live without. According to Investopedia, some of these include:
- Communication services
- Information technology services
- Utilities like electricity and water
- Healthcare
The last one, by association, includes health insurance – especially in the Medicare space. You see, when uncertainty hits, people look for certainty. They want to know they are covered should something happen. And since Medicare is something they must have, it’s automatically deducted from their benefits checks, and they pay nothing extra for 99% of Medicare Advantage plans, they want to find the most generous ones.
With many plans offering NO premiums or deductibles, and some even giving back the Part-B premium of $164.90 or a portion of it (depending on where one resides in the United States), it is an easy way to lower cost and still be covered.
Moreover, if an individual qualifies for a Medicare Savings Program (run by state Medicaid departments), they can receive anywhere from $100 to $400 a month for food, help with rent and/or utilities as a part of the plan benefits. A HUGE help during these times!
What Are The Experts Saying?
U.S. Bureau of Labor Statistics: According to the U.S. Bureau of Labor Statistics, in an article from 2001 titled, TED: The Economics Daily – Some service industries grow faster in recession, they stated:
Demand for health care is relatively unaffected by recessions, because to the consumer, healthcare can be a necessity rather than an optional commodity whose purchase can be postponed. Furthermore, Medicare, Medicaid, and private insurance provide funding dedicated solely to healthcare, so that much of the funding is not subject to competition with other types of purchases, and benefits remain available to persons during periods of unemployment.
In other words, healthcare (and by default, Medicare, grow rather than shrink during slow economic periods. Hence those employed in those industries not only have security, but the opportunity to advance.
Healthcare Dive: In an article titled, Profits continue to climb for payers as possible recession looms, also stated that… “Despite talk of a recession, all major insurers expect a rosier end to 2022 than previously predicted.”
Beinsure titled an article that supports this rosier growth to continue, Stable Outlook on the U.S. Health Insurance Industry for 2023.
Forbes, in an article titled, 3 Industries That Are Poised To Do Well In A Recession says about healthcare, “One of the things that most people are unable to cut back spending on is healthcare. No matter your income, there is still a value on your health that is not easily reduced by a decline in income.”
As I was writing this article, I found four more articles restating the same things and validating that healthcare and health insurance are one of the best, most stable and growing industries…especially during a recession or hard economic times.
And as stated previously, when a person knows they need it, have no choice but to take it and you don’t have to ask them for any money to do so, and 10,000 people are turning 65 each day between now and 2030, you can see why there is security and opportunity.
So, if you are looking for a change and would like a recession proof, lucrative opportunity that will reward you handsomely for helping others, then look into becoming an insurance broker who specializes in Medicare Advantage. You will feel the purpose of what you do and the reward for changing people’s lives.
