Significance

• Health insurance may become increasingly expensive as you get older. Your elderly mother may not be able to afford Medicare insurance premiums. Your employer's health insurance policy may provide for the addition of elderly parents if they are dependent on you. This is something you need to check with your employer about. Most insurers require that anyone added to your policy be either your spouse or someone you claim as a dependent. If your mother cannot be claimed as a dependent, then she normally won't be allowed on your policy.
  
  

Benefit

• Having your mom on your insurance policy means you pay additional premiums for having an additional insured person on your policy. However, if you already have a family policy that allows for additional subscribers to the policy, then your premium may not change. You'll notice the biggest difference in premiums when switching between a single policy and a family policy.
  
  

Disadvantage

• When your mother reaches age 65, she qualifies for Medicare. She may choose not to sign up for Medicare. However, she must be covered under your group plan. If you lose your job and thus your health insurance, your mother may be faced with a 10 percent penalty for not signing up for Medicare when she turned 65. This is a significant risk to take, but may also result in some savings if you know you will keep your job and your health insurance.
  
  

Consideration

• You must talk with your employer before adding your mother to your policy. Even then, you should talk with your mom and a financial adviser. This move could be beneficial but it could also become a financial disaster for your mother later on in life. Additionally, what happens if you retire from your work and your mother is still living? Are you covered by insurance? If not, your mother won't qualify for the exemption under Medicare rules.