Putting flexibility in your finances

To make life easier and avoid transaction and exchange fees, opening an account with a local bank can be a good idea if you visit the country regularly. This could be a Canadian bank, as some of them have branches abroad. “If the institution offers the possibility of having one account in Canadian dollars and another in U.S. dollars, for example, this will simplify the transfer of funds from one account to the other,” says Audrée De Champlain, Financial Security Adviser at N.D.C. Services financiers. There is no need for a branch to be physically on site, as everything can be done electronically.

In the U.S., having a credit card in local currency is also very convenient and again helps avoid currency exchange fees. “Generally speaking, when abroad, it’s always preferable to use a credit card rather than a debit card because it provides better protection against fraud,” mentions Sabrina Landry, Financial Planner, at Sun Life.

Notify your advisor

It is essential to notify your financial advisor of the period you will be absent. “A limited authorization form will allow the advisor to carry out certain transactions in your absence. You should also make sure to leave your advisor your contact information so that you can be reached if necessary,” explains Audrée De Champlain.

In addition, technology makes it possible to sign documents remotely if the situation arises, notes Jonathan B. Therrien, Financial Planner, Major Team, Assante Wealth Management. “Before leaving, however, it’s best to authorize your advisor to carry out recurring transactions, for example,” he says.

Finally, it is also a good idea to give a banking power of attorney to someone you trust to act on your behalf. “Financial institutions generally provide a form for this purpose,” adds Sabrina Landry.

Get the right insurance

Insurance is crucial for any Quebecer who will be away for several weeks or months at a time. “People need to be aware that if they spend 183 days or more per year outside the province, they lose their eligibility for the Régie de l’assurance maladie du Québec (RAMQ),” warns Jonathan B. Therrien. This is why it is so important to take out private insurance that covers emergency care, hospitalization costs, and so on.

“But be careful, because even if you’re still covered by the RAMQ, it doesn’t reimburse everything,” adds Anik Bougie. This means that a large portion of hospital or medical consultation fees will eventually have to be paid by the snowbird, unless the person is adequately insured.

This is because the RAMQ reimburses medical care covered in Quebec when provided by a doctor, optometrist or dentist abroad, but only up to the amount reimbursed here.

Can you count on the travel insurance often included with your credit card? “It’s a complement, but there are many limitations and it’s generally insufficient,” says Sabrina Landry. Some issuers also require that the airfare or hotel be paid for with the credit card. What’s more, eligible expense amounts and coverage vary widely from card to card, ranging from 3 days to 62 days.

Driving abroad

Many winter travellers or snowbirds decide to travel to the U.S. with their own vehicle. In the event of a road accident, the Société de l’assurance automobile du Québec (SAAQ) will compensate drivers for bodily injury, whether or not the accident was their fault. However, at the time of the accident, the cost of care abroad may far exceed that set by the RAMQ.

It is also important to know that the SAAQ does not cover injuries to other people or damage to property. That is why it is also important to have good liability insurance if you are driving outside the country. In this regard, the Insurance Bureau of Canada (IBC) indicates that it may be wise to increase the amount of liability coverage on your automobile insurance in the event of legal action for unintentional bodily injury or property damage to others.

A few measures taken before your stay abroad can save you a lot of trouble.