Less than a week after my wife and business partner Rosalie attended a call back after a screening through Breast Screen Australia, we received the diagnosis of early stage breast cancer.
As business owners ourselves we know the importance of contingency planning. As part of our insurance reviews with clients, we live and breathe the importance of having a plan in place for the unexpected. The thing about these plans is you hope you never need to call on them – but as we have just found out, sometimes you do.
The emotional rollercoaster began. Following a whirlwind of various specialist appointments, Rosalie underwent surgery within ten days of her diagnosis. Not only did we need to cope with our emotions, we had to organise medical appointments and treatment both locally and in Adelaide, travel to and from Adelaide, and still run the business. Time to test the contingency plans…
In an unplanned situation, you need to act fast and have support in place.
As a business owner, you know you should have a contingency plan and insurances in place, but have you really considered what actions you will need to take in the event of an emergency or an unfavourable medical diagnosis?
Why you need a plan in place
Each year as part of our own business planning process, we review our business and personal insurances. As our business has grown over the last few years, we have diligently addressed our policies and plans to account for our changing circumstances. While we have always understood how important it is to have plans in place, (which we regularly reinforce with our own clients), we didn’t realise just how grateful we would be to have that plan in place when Rosalie was diagnosed.
When it came to the crunch we had very little time to enact our plans as everything became about attending scheduled medical appointments. In an instant our priorities were completely turned upside down and, in all honesty, there was little room to think about anything we had not already accounted for in our plans.
One advantage we have is that our business is set up for working with regional and remote clients, so it is relatively portable and flexible. Having the right aligned professionals really helped take the pressure off as we received business support and put contracts in place to help us operate ‘business as usual’ for our clients while we were in Adelaide.
We were under enough stress without having to worry about being financially prepared and we had genuine peace of mind that we would be OK as we had our contingency funds in place.
Just having a plan helped us cope by offering a structured guide to help us get through during a very difficult time. We didn’t need to worry that we had overlooked something important.
For us, some of the most unexpected and positive elements of our planning included having:
Strong business and personal relationships
“Time was one element we were not given a great deal of. Thanks to the business and friendship networks we have in place, we were able to implement the most urgent actions rapidly and easily, something that made a huge difference to the stress we were under.”
An up-to-date list of contacts
“So simple, yet so important. This helped us prioritise who we needed to tell and when.”
Private health insurance
“While there have been some out-of-pocket medical expenses, private health insurance has seen us receive the best of care in an incredibly short time frame. We have not had to deal with the additional stress of waiting for appointments or treatment and were free to choose whichever hospital we wanted. Even the availability of a private room rather than ward care was something we didn’t have to consider, it was just there.”
Emergency funds available
“Our contingency plans involved us covering a certain level before we looked to Rosalie’s risk insurance. It’s reassuring to know we have the insurance, but we found we had set a realistic target to meet on our own before we access the insurance funds. When you are in the thick of it, you just don’t want to have to deal with some things. We also discovered the impact of distance as one of Rosalie’s daughters lives interstate. Our emergency funds gave us the ability to fly her home on short notice, as it was important to Rosalie that her daughter could see she would be ok. Talking on the phone just wasn’t enough.”
What you need to do
- Plan now – As we found out, you won’t have time to think in the event of an emergency or serious medical diagnosis. Having plans already in place will be crucial.
- Business continuity – You need to consider how your business will keep operating if you are not there to manage it. Consider whether your business operations could be portable and create a business continuity plan to share with your team and extended business networks. It’s your trusted business relationships, such as with your Stock Agent, that you will most need to rely on to help you with your business in an unplanned event.
- Insurances – Adequate levels of insurance are an important part of contingency planning. Protecting yourself and your business with insurances such as Income Protection Insurance, Trauma Insurance or Total and Permanent Disability Insurance can help to safeguard your financial position and provide peace of mind. Private health insurance may also be a consideration for your circumstances.
- Emergency funds – Even with private health insurance you may face out of pocket costs for medical treatment. Emergency funds might also be needed to cover travel expenses for you or loved ones as well as other unplanned expenses. A recent study has indicated that some cancer patients seeking treatment through the private health system may be left with out-of-pocket medical expenses exceeding $21,000. [1]
- Personal planning – It’s important to take advantage of any entitlements available to you such as accumulated sick, holiday or unpaid leave if appropriate. Consider your personal networks and prioritise who you need to tell and when if the unexpected should happen.
Most importantly – look after yourself and participate in the screening programs available – early detection was our greatest blessing.
We are fortunate. Rosalie’s surgery removed all of the cancer and tests show it had not spread to her lymph nodes. While she is still undergoing radiotherapy, she is expected to complete this by Easter and recover over the following months, with medical supervision for the next five years.
We sincerely thank all our friends and those in our community who offered their support: a shoulder to cry on, business support, gardening, meals or accommodation in Adelaide. We also thank Cancer Council SA, McGrath Foundation and Breast Cancer Network Australia. Our aligned professionals, Active Financial Management, Riverland Lending Services and Kelly Kelly Legal have also provided invaluable business support. Thank you.
How we can help
If you would like help to put together a practical and realistic contingency plan for you and your business, I encourage you to contact me today on 08 8253 2906 or email info@financialservicessa.com.au to arrange an appointment.
Phillip Dibben is a financial adviser with Active Financial Management. Active Financial Management and its advisers are Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306.
This information does not consider your personal circumstances (including taxation) and is of a general nature only. You should not act on the information provided without first obtaining advice specific to your circumstances.