What advisors need to tell clients traveling abroad this summer

Stop the mail. Check. Pull out the plug on the toaster oven. Check. Set the burglar alarm and timers on the sprinkler system. Check, check.

Call financial advisor to review estate plan, document location and travel insurance?

Better make sure your client checks those boxes too.

The post-pandemic surge in international travel has continued this summer with no shortage of families — especially high-net-worth ones — taking to the airports and taking off to foreign locations. Financial advisors nationwide are steadily fielding calls from clients inquiring about what they should have in place prior to leaving home. And while the spike in conflicts abroad hasn't stopped them from leaving, advisors say their clients are more concerned about safety and security than in prior years.

“We advise our clients to not let their children post pictures of their travels, as this will catch the attention of a potential thief — who can either rob their house while they’re gone or plan a kidnap or robbery event while traveling,” said Patti Clement, executive vice president at HUB Private Client.

Clement added that she advises clients to avoid using public Wi-Fi and charging stations as this is a way for cybercriminals to access personal information. She also recommends that they avoid wearing high-value items including pricey clothing and jewelry, or anything flashy that will attract attention. Better off leaving it home if possible.

As for what to bring on the trip, the more virtual, the better.

“Whether domestic or international travel, our clients have an organized virtual vault they can access their personal documents when traveling. Specifically with international travel, our clients have an electronic copy of their passport available to them,” said Richard Austin, executive director at Integrated Partners.

Austin added that a client’s estate plan documents and life insurance ownership should be reviewed on an annual basis and kept up to date so if something unfortunate were to happen, their intended beneficiaries will be taken care of.

“Without proper planning, an unintended beneficiary, the IRS, could inherit to the detriment of their loved ones,” he said.

Dan Brady, founding principal and wealth manager at Savvy, also suggests bringing some cash along, just in case.

“An extreme amount of cash is unnecessary but having cash available can solve a lot of problems,” Brady said.

In terms of travel insurance, the key is to take it out as soon as possible, focusing on emergency medical and political evacuation, depending on the destination. And travelers also need to know the exact extent of their coverage.

“There are policies that can be purchased per trip, and also annual ones that cover you anytime during the year with maximum days out of the country. Most U.S.A. medical policies have limitations when traveling,” said Clement. “Having a good medical evacuation policy should be considered, especially after what we experienced during Covid and other events. Some countries will not let you enter without proof of medical extension coverage.”

As to the eternal question of "How much coverage is enough," well, that depends. The cost of insurance, length of the trip and the destination all play roles in that decision.

Clement, for one, suggests those travelers heading to “conflict areas” have a good quality kidnap and ransom policy that includes medical and political evacuation for anyone in the party. These policies usually come with a private security consultation in advance so that the traveler has a plan in place should an event occur.

Finally, and most importantly, the advisor should be aware of the dates the client will be gone and how to contact them if necessary. 

“This is a great way for the advisor to show his or her importance by letting the client know they are being taken care while away," Brady said. "This will relieve the day-to-day stress for the client and let them relax and enjoy their time away.”