If you happened to catch last week's column you know that I recently I had eye surgery, and my vision is impaired at the moment. Fortunately, my eyes are healing nicely, but I still really can't use the computer. Or do much of anything.
Loyal readers of this column might remember that last year I fell out of a tree and landed on my head.
During the construction of a tree fort for my kids, I stepped on a board that wasn't nailed down. I fell on a stack of lumber on the ground far below, ricocheting off of scaffolding on the way down, and finishing with a full face plant, knocking myself out cold. Falling from height and landing on your head - this is the kind of scenario that puts people in wheelchairs.
I don't know how long I was out for, but my first conscious thought was "How bad is it?" I didn't know if my neck was broken. I didn't know if I had a wooden stake puncturing my chest. I just didn't know. But it felt bad. I've played contact sports all my life, and I've been in more than one wreck over my years, and this didn't feel like a bloody nose. This felt like 911.
Fortunately, none of those things happened. But that was just blind luck. Kind of like being struck by lightning and then walking away from it.
Geez, you'd think with all this stuff happening I must be a real safety hazard, eh? But that's the thing. I'm really not.
I don't smoke, I rarely drink, I try to eat healthy and I exercise when I can. I'm not winning any trophies these days, but the doc says I'm doing pretty good. I've got a desk job, for goodness sakes, how much risk can there be in my life?
Well, quite a lot, as a matter of fact. And there is risk in your life too. And that's the point of this column. It happened to me, and it can happen to you too.
Let's put risk into perspective. Let's say that you are a 30-year old non-smoker.
If you are male, by the time you reach age 65, there is a 28.4% chance of becoming critically ill, a 37.4% chance of becoming seriously disabled, and a 7.9% chance of death. Since more than one of these things can happen to you, the combined odds of at least one of them -becoming critically ill, becoming disabled, or dying before age 65 - is 62.6%.
If you are female, by the time you reach age 65, there is a 20.9% chance of becoming critically ill, a 42.7% chance of becoming seriously disabled, and a 5.8% chance of death. Since more than one of these things can happen to you, the odds of at least one of them happening before age 65 is 58.2%.
Now let's say that this 30 year old male and this 30 year old female happen to be married to each other. The odds of at least one of them becoming critically ill, becoming disabled, or dying before age 65 is 84.4%.
Illnesses and injuries don't just happen to other people. In fact, they happen to almost everyone. The question is, how prepared are you to deal with one?
I want you to think about is what would happen to you, and to your family, if the unexpected happened? If there was something odd on the test results of your next physical? If that car coming through the intersection didn't see you? If your footing gave way?
In my case I have been lucky. Many people won't be. Unexpected things happen. Potentially your life changes horribly in less than 2 seconds.
So what would happen if you were out of the picture? What would happen if your wife and kids were suddenly your widow and orphans?
What would happen if you were laid up in a hospital bed? Can you still pay the bills? Do you have resources that you can turn to if you can't work?
I know the answer to these questions. I am 44 years old with 2 small kids. I have $1.5 million of life insurance, $250,000 of critical illness insurance, and all the disability insurance I can buy. These are all personally owned polices. I don't rely on group or creditor insurance. Because even guys like me sometimes fall out of trees and land on their head.
What about you?
The opinions expressed are those of Brad Brain, CFP, R.F.P. CLU, CH.F.C., FCSI. Brad Brain is the President of Brad Brain Financial Planning Inc. in Fort St John, BC. He can be reached through www.bradbrainfinancial.com. Follow Brad on Twitter @BradBrain.
