Budgeting for surrogacy: What intended parents should know
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Embarking on your surrogacy journey can be thrilling…. It can also be one of the most expensive ways to build your family.
The reality is: most IPs don’t know just how expensive surrogacy truly is until they begin their journey. And by then, it can be too late because the dollar signs are daunting.
Here’s the good news…
Smart financial planning for surrogacy allows you to plan for every expense, prevent unwanted surprises, and stay completely in control of your budget from the beginning.
This guide covers everything you intended parents need to know about budgeting for your journey – large expenses to financing tips.
Let’s dive in.
Here’s what’s inside:
- The real cost of srrogacy
- Breaking down the major expenses
- How to build a solid surrogacy budget
- Smart ways to fund your journey
The real cost of surrogacy
Surrogacy isn’t cheap. Let’s just get that out of the way.
Prices for surrogacy in the United States range from $100,000 to $200,000. If we factor in medical care, insurance, legal fees, and agency support, that amount can increase. Wow. That is a broad range…. Where you fall depends on your location, your team, and the unique circumstances of your journey.
State of residence also matters a lot. For example surrogacy cost in California are typically on the higher end because there are more legal protections in place, greater compensation for surrogates, and higher medical expenses. For that reason, financial planning for surrogacy should always begin with a state-by-state breakdown of costs.
Here’s why California tends to cost more:
- Established surrogacy-friendly laws
- Experienced fertility clinics
- Higher living costs for surrogates
- Larger pool of professional agencies
When planning your budget, where you decide to build can affect your bottom line by upwards of ten thousand dollars. That’s a significant change.
Breaking down the major expenses
The first step to smart budgeting is knowing where your money is going. Let’s dive into some big categories…
Agency fees
The agency fee is typically your first largest investment. They assist you with mate selection, screening, coordination, and support every step of the way.
Agency fees vary anywhere between $35,000 – $55,000. Keep in mind that full-service agencies cost more but will usually throw in add-ons like escrow, counselling, and lawyer referrals.
Price isn’t always indicative of value. Look for transparency, competence, and good communication before signing on the dotted line.
Surrogate compensation
This is the single biggest line item in most surrogacy budgets. And rightfully so.
A Surrogate should be paid fairly for her extraordinary dedication. Expect most base pay ranges to be somewhere between $45,000 – $65,000 for an introductory surrogate. Once you factor everything in, surrogates with prior experience (or surrogates in high cost of living states) can earn $70,000 – $95,000+.
Additional payments usually cover:
- Lost wages during pregnancy
- Maternity clothes
- Childcare during appointments
- Travel expenses
- Bed rest allowances
Medical & IVF costs
Medical costs cover IVF, embryo transfers, prenatal care, and delivery.
But it’s only the IVF part that costs that much. Embryo creation itself can tack on $30,000-$50,000 to the total price tag. And using an egg donor can increase costs by another $20,000-30,000. Geez Louise.
And here’s something most first-time intended parents don’t realise…
Sometimes transfers don’t work on the first attempt. In fact, most intended parents plan financially for multiple tries since success rates fluctuate each cycle.
Legal fees
Legal work is one area you should never cut corners on.
You will need contracts with your surrogate and court-ordered parental rights. Attorney fees run between $10,000 – $15,000 depending on where you live and the complexities involved.
How to build a solid surrogacy budget
So now that you have an understanding of the major expenses that come with a baby. Let’s put together an actual financial plan. Follow these steps:
Step 1: Get a REAL estimate. Every project has unique requirements. Ask for itemised quotes from at least 3 agencies so you can compare like with like.
Step 2: Add contingency. Expect the unexpected. Always include an additional 15-20% over and above the quote to ensure funds are available for unforeseen medical requirements, additional transfers or rematches.
Step 3: Know When payments are made. Surrogacy isn’t prepaid. Payments are dispersed throughout your journey through an escrow account. It’s important to know WHEN each expense occurs for your cashflow.
Step 4: Review your insurance. Many standard health insurance plans have exclusions for gestational carriers. Read your plan and think about purchasing a special surrogacy insurance policy for your surrogate.
Creating a budget using these tips ensures you won’t fall prey to the largest mistake prospective parents make: Running out of money halfway through.
Smart ways to fund your journey
Very few intended parents pay for everything out-of-pocket. Most mix and match funding resources.
Here are the most common ways to fund surrogacy:
- Personal savings: Between five and twenty percent of expected total cost is initially saved by most families.
- Fertility loans: Specialised lenders offer loans specifically for surrogacy expenses.
- Home equity: HELOCs can offer lower interest rates than personal loans.
- Employer benefits: More companies now offer fertility and surrogacy benefits.
- Grants: Baby Quest Foundation and Men Having Babies GPAP are examples of non-profit organizations that provide grants annually.
- Crowdfunding: Sometimes families will crowdfund part of their budget with friends, family, and online.
Check with your employer. Many large corporations these days have outstanding fertility benefits that may help offset some of your surrogacy costs. Look on your Human Resources website or inquire with your benefits department.
Blending 2-3 sources of funding is more realistic than finding just one big one. This alleviates stress on any one source and helps you stay afloat with monthly payments.
The bottom line
Surrogacy is a life-changing journey…
However, it doesn’t have to be a financial nightmare. Proper financial planning for surrogacy can help you prepare for every stage of the journey ahead and let you focus on what’s important- adding to your family.
Quick recap:
- Expect the total cost to land between $100,000 and $200,000
- Break your budget into agency fees, surrogate compensation, medical costs, and legal fees
- Build in a 15-20% contingency fund for surprises
- Combine multiple funding sources to make it work
- Get everything in writing before you sign anything
The best advice is to start saving now. The sooner you start the easier (and stress free) it will be.
You’ve got this.