I got my own financial plan wrong. Ouch. 

 I correctly calculated how much I need to save for a secure retirement. Having lived in London for 20 years, I bought a house I could afford in Norfolk and confidently modelled repayment of the mortgage well in advance of retirement. 

In fact, I didn’t think I would retire; I imagined myself floating around the office with white (alright, pink) hair in my eighties. My grandad was still cutting hair in his late eighties so this seemed perfect. What a great plan! 

 Unfortunately, I had done what most clients do; I had underestimated the risks and my plan was suddenly and dramatically de-railed. 

On 1 November 2017, aged 41 and at the peak of my working life (and borrowing), I was diagnosed with stage IIIA breast cancer and given an 18-month treatment plan. Yup. 18 months. My chemotherapy started five days later. I still spend on average a day per week in medical appointments. That’s quite an impact. 

 My plan included significant critical illness cover (hooray!) but no income protection (inward gasp!) as it was too expensive and difficult to define. The business had not taken out additional key person cover either. I laugh (awkwardly) at that now. Silly old me.  

How did this happen? Naivety and a belief that I was invincible. My critical illness cover was substantial, but not relative to my exposure and given the commitments the business had on an ongoing basis. Of course in both cases, I hadn’t considered how soon I would need it, nor what longer term impact such an illness would have once treatment had finished. 

 I’d based my plan on what happened to my family; my dad died at 64 and worked all the way through his many different cancer treatments – he’d had cancer eight times, and four different types. I know, again, I should have predicted this, right? Wrong. He drank heavily and wasn’t first diagnosed until his 50s, I felt I had time and health on my side.  

He would have been a Vitality dream case study, claiming multiple times. Only he had no cover at all – hence the working throughout treatment bit. That wasn’t really a choice and neither was it for me. 

Thankfully, few people get seriously ill during their working life but when they do, it’s devastating. A client the other day announced that “this is all fine as long as I stay alive!”. Indeed. And if you don’t? Or worse still, let’s assume you are alive but can no longer earn an income? If you’re not modelling for the worst case for your clients; there’s no point modelling at all. 

 Talking openly about such difficult topics with clients is as critical as talking to your colleagues, staff, partners and families. Very few people even consider the potential impact and how far-reaching it is. If you need help to get comfortable, just ask. Your clients are depending on you. 

 If you don’t plan for the worst case, you might miss out on the best case, and this isn’t just true for those of working age. It’s no good giving away all your money to find you can’t afford a good care home in old age. 

We now offer critical illness, life cover, income protection and private healthcare to all our staff and bore clients senseless on the topic of health, the importance of wills and lasting power of attorney and their impact on financial plans. 

 The reality for me? My life has changed considerably. I live in constant fear of what might happen next and not only is my wonderful business now under financial strain, but I’ve now got to survive another three years before I have any chance of getting additional cover.  

 On the plus side, I’m now a much less naive planner. It really is better to be safe than sorry. Critical illness and private medical insurance saved me, my business and my sanity (for now). Income protection or more cover would have transformed my future. 

Hayley North is a chartered financial planner at Rose and North