What happens without a contingency plan? Why do we struggle to protect ourselves adequately?

What you can expect from this article

You only realise an airbag is missing when you’re in an accident. It’s much the same with everyday precautions that aren’t immediately obvious. Take insurance, for example. Because as long as everything’s going smoothly, most of us can’t imagine that things might ever go wrong. And what about the most unlikely events that could happen – serious illness or death, for instance? Then most of us think: if the worst comes to the worst, we’ll just gather all the documents together. We’ve got that one folder with all the important papers, haven’t we? It’ll be fine.

The truth is: in most cases, nothing fits at all. Because when we take the time to think our way through such situations, it quickly becomes clear to us that, when it comes to a lot of information, we know for a fact that we don’t have it. Our mother’s passwords, for example. Or which subscriptions our partner has taken out. Perhaps our grandfather has taken out some private pension schemes without telling anyone. And if something were to happen, we’d certainly have other things on our minds than any contracts or documents. Yet there’s a surprisingly simple solution to this situation.

We only imagine that we have everything under control

It is perfectly natural and normal that we do not want to deal with unpleasant matters. That is why we try to avoid them, or at least tick them off our list as quickly as possible. So, for example, when we take out life insurance, we tick the matter off by signing the policy. Yet it is certainly important to ensure that the insurance pays out in the event of death. To do this, we need to ask ourselves: if the worst were to happen, would everyone know that this policy exists and what needs to be done? Because one thing is clear: without a centralised system, most information is scattered across various locations. Some policies are kept in folders, whilst login details are jotted down in a notepad. Other important documents may be stored digitally or, since the last move, in a box in the cellar.

Often, only one person knows where everything is. This works in everyday life, as long as that person is available. However, if they are unavailable, a problem arises immediately. Family members or colleagues are then faced with the daunting challenge of gathering all the information and documents. And in most cases, nobody knows what to look for. As a result, a great deal of time is wasted in what is already a stressful situation, and unnecessary costs may arise due to missed payments or forgotten subscriptions. Furthermore, the question always remains as to whether everything has really been found or whether something important has been overlooked. This uncertainty makes decision-making more difficult and can have long-term consequences.

The professional environment needs all the information, not just bits and pieces

When it comes to contingency planning, many people overlook the workplace. After all, a person’s sudden absence can have far-reaching consequences there. Even during a brief absence due to illness, many realise that important information is often not recorded anywhere. That’s when we realise just how dependent we actually are on individual people and their specialist knowledge. If only one person knows where important information is kept, risks automatically arise. For example, this can lead to missed payments or approvals, missed appointments and ignored enquiries.

Situations like these can result in massive financial losses. Furthermore, misunderstandings and conflicts arise due to a lack of documentation and information. And tensions, in turn, cost time, quite apart from the long-term consequences for working relationships within the company. There are therefore many reasons to set up a comprehensive contingency file. This is where all your personal and professional information, documents and attachments are stored. But how does this information reach those who need it in an emergency?

The digital end-of-life care record is a living document

There is no doubt that the sudden absence of a person has an impact on both their personal and professional lives. The contingency plan minimises the disruption and gives those around them the time to take the necessary steps to ensure that people and processes are safeguarded. To this end, a great deal of data, information and documents must be recorded. This does not have to be done all at once, nor does anyone have to manage everything on their own. The contingency file allows tasks to be shared out and the various components to be compiled gradually.

A digital end-of-life planning file offers two significant advantages over paper files and folders:

1. Digital attachments: Whilst physical files can only contain paper documents, a digital end-of-life plan can also include files or links.
2. Individual access rights: In theory, anyone could take a paper file off the shelf. By contrast, a digital end-of-life plan is stored in encrypted form on a secure server. The person to whom the file belongs specifies in advance exactly who is allowed to access what information and when.