There are several types of power of attorney (POA) depending on your circumstances. Generally, a POA can be used to give a trusted individual the ability to make decisions on your behalf, if you are unable. A POA may be used for financial decisions, healthcare or a very limited purpose such as a specific transaction.
A POA can be important if you become incapacitated or ill, and are not able to make decisions for your best interests. If you are anticipating health problems, a POA can give you the peace of mind that your affairs and healthcare decisions will be handled responsibly. For this reason, the person you select to give the POA must be someone that will act for your benefit, and understands your priorities and values.