Exposing your entire UTXO set to a KYC third party is a bigger risk IMO and there is no guarantee they won’t “lose” they key or get hacked and can’t retrieve it 
If they want to save in bitcoin, learn proper OpSec, it is not hard. They just have to put in the time 
And never advise someone to put their entire stack on one type or model of HWW. 
Distribute the risk with different companies