Advanced healthcare directive, often called an advance directive, is a legal document that allows individuals to state their preferences for medical treatment and appoint a healthcare proxy if they become unable to make decisions for themselves. It typically includes a living will component, specifying wishes about life-sustaining treatments such as ventilators, feeding tubes, and resuscitation, and a healthcare power of attorney granting decision-making authority to a trusted person. Advanced healthcare directives help ensure that medical care aligns with the individual's values and reduce uncertainty and conflict among family members during crises. While not a financial document, it is a critical part of comprehensive planning alongside wills, powers of attorney, and beneficiary designations, particularly for clients engaged in long-term care and retirement planning.

Advisors discuss advanced healthcare directives when facilitating holistic planning conversations that go beyond investments and insurance. They coordinate with estate-planning attorneys to ensure clients have up-to-date directives valid in their state of residence and, when appropriate, on file with primary physicians and hospitals. In long-term care and life insurance planning, advisors explain that having an advanced healthcare directive supports smoother decision-making when cognitive impairment, serious illness, or end-of-life scenarios arise. Carriers may ask about healthcare proxies in certain LTC claim forms or care coordination processes. Advisors often encourage clients to review directives with family members so that the chosen healthcare agent understands the client's wishes. Understanding advanced healthcare directives helps advisors position insurance products within a broader framework of dignity, autonomy, and family communication around serious medical events.