As global temperatures rise, the wealthy are seeking cooler escapes. Instead of heading south for typical vacations, high net worth individuals are increasingly choosing northern destinations like Canada, Greenland, Iceland and even Antarctica. This emerging trend, known as “colds,” offers a unique way to beat the heat, but it comes with its own set of risks.

IN GreenlandFor example, popular activities like diving among icebergs and whales or paddling in Arctic waters offer incredible experiences but can pose physical risks. Similarly, the fascination with Emperor penguins has led to an increase in off-season travel to ANTARCTICAwhere travelers face temperatures that can drop as low as 50 degrees below zero.

While these cooler getaways offer literally refreshing alternatives, it's important that financial planners guide clients through the potential pitfalls, ensuring that their unique getaway doesn't turn into a costly disaster.

What could go wrong?

A lot can happen between booking a trip and the actual departure date – an unexpected family illness, a personal injury or urgent work matter, to name a few. But even more worrying are the unforeseen challenges that can arise during said journeys. Whether it's a health emergency or a situation that threatens the safety of an HNW family, having a solid strategy is essential not only to protect these individuals, but also to ensure peace of mind.

Advisors should address some potential concerns with their clients before embarking on a trip:

• Risks of injury. Exploring unfamiliar environments—such as high-altitude areas or icy terrain—comes with an increased risk of injury. Whether it is a personal injury or an accident involving others, customers should be prepared for these potential risks when traveling in regions with extreme conditions.
• Travel routes. Whether you travel by car, boat or plane, getting to remote places can be dangerous, especially if unpredictable weather develops. Advisors should emphasize the importance of preparing an exit strategy before heading to these faraway destinations.
• Flight delays and cancellations. Many isolated regions offer limited flight options, meaning that if a flight is delayed or cancelled, booking can be difficult. Customers should be informed that easy access in and out of foreign countries, especially those with challenging climates, cannot always be guaranteed.
• Access to medication and health care. Traveling abroad increases the risk of illness or injury, and most domestic health insurance policies do not offer international coverage. Without additional travel insurance, medical expenses can add up quickly. Remote destinations such as the Arctic, Iceland or high-altitude mountain ranges present even greater risks, with more difficult conditions and limited access to emergency care.

How to reduce travel risks

Financial planners should encourage their clients to consult with their insurance brokers to ensure coverage for potential interruptions during the holidays. A comprehensive insurance plan will provide tailored protection, addressing specific concerns that HNW individuals may overlook or find challenging to manage during a travel disaster.

Insurance options range from annual policies to single trip coverage, so it's essential to assess needs in advance to ensure the policy is activated before departure.

Here are the top nine coverages that HNW individuals should secure before they travel:

1. Concierge services. Luxury plans often offer personalized services that can help organize various aspects of travel, adding convenience for HNW travelers.
2. 24 hour assistance services. Provides round-the-clock support before, during and after the trip to manage any issues that arise.
3. Trip cancellation. Refunds up to 100% of prepaid, non-refundable expenses if trip is canceled for a covered reason.
4. Worldwide liability coverage. Extends liability protection internationally, covering individuals against loss or damage wherever they travel.
5. Sports and activities coverage. Extends medical coverage for adventure sports such as hiking, skiing and mountain biking, which carry unique risks.
6. Emergency medical coverage. Protects against unforeseen medical expenses. Travelers in remote areas should aim for at least $100,000 in coverage.
7. Provision of medical evacuation. Covers the cost of emergency evacuation. For trips to remote locations, at least $250,000 in coverage is recommended to handle emergencies.
8. Kidnap and ransom coverage. Includes hostage recovery, security services and protection programs. Some insurers also offer pre-trip awareness training and tracking services for added security.
9. Political coverage of the evacuation. Provides assistance in the event of political instability, armed conflict or personal threats, providing safe transportation to a safe location.

Providing these covers helps HNW customers to travel with peace of mind, knowing they are protected against a range of potential risks.

Common misconceptions

A common misconception is that credit card travel protection can completely replace travel insurance. While credit cards can cover basic travel interruptions, they often offer insufficient medical coverage for international travel, and their trip cancellation benefits are usually limited.

Additionally, most travel insurance policies limit reimbursements for lost, damaged or stolen personal items. Expensive jewellery, luxury goods and other valuables should be insured separately to ensure full coverage.

Another point to consider is that many cancellation policies have benefit limits, which can be a problem for travelers with expensive trips. For greater flexibility, HNW travelers can opt for 'Cancel for any reason' cover, which offers a partial refund if they cancel for reasons not covered by their standard policy.

Explore with confidence

Preparation is paramount. By securing the right insurance policies and having a solid plan in place, your HNW clients can turn their next “cooling off” into an unforgettable experience with peace of mind knowing they are protected.

Robb Lanham is Head of Sales at Private Client Hub