When you think of RISK, you’re probably not thinking about the possibility of burning your lip on a hot cup of coffee. Your mind is somewhere between the extremes: What is going to happen to my family or business if I die? How do I pay my mortgage if I change or lose my job?
Well let’s back up a step. Imagine this world. It’s a place in the future, but it’s real.
It’s 3 am and -40 degrees outside. Your furnace goes. No problem! You tell the 24hour repair guy that you’ll pay him cash when he arrives. Just get it done. You know the money is in your sock drawer.
At lunch the next day, your husband calls to tell you his Mom died suddenly, and he has to take three months off work to go home and settle the estate. You console him and remind him that the money is in the account to pay for the flights and keep the family going while he is away. Just take good care of Dad. He’s going to need to move to a nursing home, but you had encouraged them to buy Long Term Care insurance when they retired, and the policy will provide enough income so that you don’t have to liquidate your RRSPs to supplement their health care needs.
Your husband phones the next morning to tell you he arrived safely, and he’s doing fine. He mentions how glad he is that there won’t be any hassles when you both head to Eternity because your wills are current, your Personal Health Directive and Power of Attorney are all in order, the debts are gone, and your life insurance policy will handle any tax liability that remains on your assets.
His call makes you stop and reflect on the many conversations you had with your financial advisor. How you decided to buy Critical Illness insurance five years ago, and the proceeds paid off the mortgage when you got diagnosed with breast cancer three years later. You beat it. And you’re celebrating this year by running in Race for the Cure.
And as you head to the breakfast table, taking that early morning sip of fresh coffee, you stub your toe on the chair and burn your lip. After counting to ten, you grin through your teeth and think, “Sheesh! If that’s the worst that happens to me today, I’m doing just fine!”
It’s not always easy, and it takes some planning, but that kind of financial stability is possible. And you deserve it!
If you remember one thing, remember this: Risk Management is simply eliminating the I wish I had with I'm glad I did!