An advanced directive with regards to any health care policy represents a legal document, which provides instructions to an attending physician on whether life-sustaining, artificial administration of food or hydration is needed that will impact death in the individual. The goal of such a directive is to enable the individual to control certain aspects of their health care treatments or provide instructions for its withdrawal, even if it entails death. Any individual who is of sound mental health and older than 18 years can sign this directive for a health insurance policy.

There are primarily three different kinds of advance directives: proxy directives, instruction directives and combined directives. A proxy advanced directive is when a designated person is entrusted with legal authority to make these life-altering decisions if the individual is unable to decide for themselves. Hence, such a directive will specifically name a particular individual as a proxy who will decide the course of medical treatment on your behalf. Instruction directives are written statements of the individual's preferences toward medical treatment. The circumstances under which such preferences are to be implemented are also clearly mentioned in the statement. This type of directive is also commonly known as a 'living will' and is handed to the persons responsible for the medical treatment of the individual. The third type of directive is a combination of instruction and proxy directives. In such instances, the individual might prefer giving written instructions as well as designating a particular individual as a proxy.

In certain instances such as mental incapacity, illness or extreme injury could result in a person being unable to make decisions pertaining to health care by themselves. In these instances, those persons who have been designated with the health care treatments will be required to make the decisions on the patient's behalf. In such cases, issuing an advanced directive can be highly beneficial. Clearly written directives prevent any instance of ambiguity or arguments regarding the course of treatment to be followed should a particular situation arise.

The choice of a representative for directives in a health insurance policy should be done carefully. Since this individual will be required to act on your behalf to take decisions in tandem with your preferences, he or she should know you well and be well-versed with your preferences about different medical treatments. This individual should also realize it is his or her responsibility to carry out your wishes, even if it means disagreement from family members. Possible considerations for a representative in a health insurance policy directive include a close friend or a health care provider you have trusted. However, the attending physician and representative cannot be the same.