Financial Word of the Day: Health Care Proxy

Larry Jones
Jun 27
2 min read

Updated: Sep 26

“Prepare now—because decisions made in crisis rarely serve your best interests.”

Definition: What is a Health Care Proxy?

A Health Care Proxy is a legal document that allows you to appoint someone you trust to make medical decisions on your behalf if you're unable to speak for yourself due to illness or injury. This person—called your health care agent—steps in when you’re unconscious, mentally incapacitated, or otherwise unable to communicate your wishes.

It’s like giving someone your “voice” when you don’t have one.

Why It Matters—Financially and Personally

While it may seem like a purely medical decision, having a health care proxy in place is actually a smart financial move, too. Medical care decisions can carry huge financial implications—like whether to pursue expensive treatments, long-term care options, or end-of-life procedures. Without someone to represent your wishes, decisions could be made that go against what you want and what makes financial sense for your family.

A proxy reduces stress, confusion, and costly mistakes during already emotional times.

A Quick Example

Let’s say you’re in a serious car accident and unable to communicate. The hospital needs a decision fast about whether to perform a risky (and costly) surgery. If you’ve named your spouse or adult child as your health care proxy, they can make that call—based on what you would have wanted. If you haven’t named anyone, doctors may turn to the courts, default to standard protocols, or allow family members to argue, delay, and stress—potentially leading to expensive and unwanted treatments.

How to Set One Up

Most states offer a free or low-cost form online
You’ll typically need to sign it in front of a witness or notary
You should choose someone who knows your values and can handle pressure
Store the document somewhere accessible and give copies to your doctor, family, and the named agent

And don’t forget to update it as your circumstances or preferences change.

Use It in a Sentence

"After turning 50, I finally set up a health care proxy so my daughter could make medical decisions for me if I ever couldn’t."

Bottom Line

A health care proxy isn’t just a form—it’s a financial safeguard and a gift to your loved ones. It brings clarity when things get cloudy. Like a will or a power of attorney, it’s one of those grown-up decisions that’s easy to postpone—but essential to get done.

Add it to your checklist today. Your future self—and your family—will thank you.