Prepare for Scary Events

Scary things happen in life. Here's how to make thinking about them easier.

You love your family and want to make sure they're protected if something happens to you. One way to plan for disaster: Manage your risk.

The right variety of personal insurance. You already hold insurance for your car or home. Chances you need other insurance loom greater than you think.

Do you carry disability insurance? Slightly more than a quarter of today's 20 year-olds will become disabled before they retire; of the 37 million disabled Americans over half are 18 to 64 - their working years.

What about life insurance? Studies show more than 550,000 Americans ages 25 to 64 die each year, meaning more one in six men and one in nine women die before retirement age. Every year some 4,500 Americans die from injuries on their jobs , according to the U.S. Bureau of Labor Statistics (BLS).

Update your medical insurance. We live in a new, very complicated world of medical insurance. Find a consultant or advisor to help you navigate the choices.

Business owners face tougher questions. If you own a business, do you still provide insurance for your staff? Do you stay with a fully insured program or use one that supports a health savings account ?

What deductibles do you have? Does the one-page explanation from the insurance company tell the whole story?

What about health-care proxies? About half of Americans haven't drawn up a will. With no will you surely have no health-care proxy , a legal document designating another to make your medical decisions if and when you can't.

What do you want if you need life support? Who pays your family's bills? Does your significant other know where to find the important documents and cash?

Health-care proxies only come into play if something terrible happens to you. Don't add extra stress to your loved ones in that moment. Plan to help them carry out your wishes.

What if you lose your job? The chance of you losing or having to change your job seems to rise every year. Rarely does a recent grad start with a company and spend an entire career with that employer. Most likely you face six to 10 different employers - if not careers - during your working life.

According to the BLS, Americans in their early and middle 50s held an average of more than 11 jobs since age 18. Baby boomers hold large numbers of short-duration jobs even in middle age. A third of jobs started by those 40 to 46 end in less than a year and 69% end in less than five years.

What work gives you pleasure? Excited to get up in the morning and go to work? If not, time you take control and change your job or career. Even if you love what you do, your company may lay people off. What would you do if you're one of them?

Have you put together a rainy day fund? You need emergency savings - especially in today's work world.

What if you lose your significant other? Do you save enough cash to hold you if your loved one dies? Bought life insurance to at least get you through a transition?

Would the death trigger a large tax bill ? For how long can you file a joint return and keep taxes lower? Get a tax break on selling your home or inheriting assets?

Find a financial advisor who asks these questions. The advisor's fee is a solid investment - especially if the unthinkable happens to you.

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Josh Patrick is a founding principal of Stage 2 Planning Partners in South Burlington, Vt. He contributes to the NY Times You're the Boss blog and works with owners of privately held businesses helping them create business and personal value. You can learn more about his Objective Review process at his website.

AdviceIQ delivers quality personal finance articles by both financial advisors and AdviceIQ editors. It ranks advisors in your area by specialty, including small businesses, doctors and clients of modest means, for example. Those with the biggest number of clients in a given specialty rank the highest. AdviceIQ also vets ranked advisors so only those with pristine regulatory histories can participate. AdviceIQ was launched Jan. 9, 2012, by veteran Wall Street executives, editors and technologists.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.