The total cost of surrogacy includes agency fees, surrogate compensation and expenses, fertility clinic fees and legal fees. However, there are factors to consider which can affect the surrogacy costs substantially. We are going to list fees you may encounter on your surrogacy journey (not comprehensive) and what you can estimate to pay as well as how to plan financially for surrogacy.
How to Fund Your Journey:
Go Fund Me Page
These are great for people who have friends and family who want to contribute to their surrogacy journey. There are no interest charges or funds to be paid back. We can even garner support from strangers who understand the process.
Pros:
Free Money from Friends and Supporters
Cons:
Personal Privacy Concerns
Funds can take time to accumulate.
401k IF You Have a Home Equity Line As Backup
401k loans are great in theory. You borrow the money from yourself and pay the interest back to yourself. The problems come when a person decides to leave the job they are in and transition to a new company. The 401k Loan would then become due immediately upon exiting their current employer. If you have a home equity line as backup, then if you are terminated or you decide to leave the company, you can pay back with your line of credit.
Pros:
Easy Access to Capital
Paying yourself the interest on the loan
No Credit Check
Cons:
Can be a nightmare if you do not have a financial backup plan.
Can potentially miss out on a bull market.
Home Equity Line
We normally never suggest using a home equity line for personal/medical expenses. In the 1980’s it was popular to buy cars under home equity lines due to the attractive interest rates and the deductibility of interest on tax returns. An unforeseen circumstance happened to those who could not make their car payments. When you normally stop paying on a car the bank will typically just come and repo the car. When you put the loan on your home equity line they will foreclose on your house! A much different worst-case scenario for the average car buyer. The bank is able to make a huge profit from selling your former house and there isn’t much recourse that can be taken. The same thing applies to surrogacy. However, in my opinion, bringing a child into your life qualifies for taking a risk. Just be careful of the anecdote above with this type of loan. This happens more than you think.
Pros
Quick Loan Processing Time
Easy to Qualify For
Great Interest Rates
Cons
Could potentially lose your house if you fall behind on the loan
Lending Tree or Prosper.com
Lending Tree and Prosper are great because they specialize in alternative loans. The process is simple through their respective websites. You will need above average credit to get many of the riskier loans but they provide fair interest rates. There is not a lot of recourse on these loans unless you guarantee collateral for the loan. Depending on individual state law, they can put a lien on your home or even force you into foreclosure. Some states do not allow creditors to foreclose on personal homes. If you do live in a state where they can foreclose, you would be better off looking at a home equity line.
Pros
Excellent Process
Easy to Access Funds
Cons
Higher Interest Rates
Look at state laws to see recourse
401k WITHOUT Financial Backup
This loan is almost always a terrible idea. According to recent labor department statistics, most employees do not spend longer than five years with a company. Like previously mentioned, once you leave or are terminated for any reason, the 401k loan becomes due in full immediately. The will put an extreme amount of financial pressure on the parties involved.
Pros
Paying Interest to yourself as opposed to a bank
Cons
Can be too high risk for most people.
Here below we lay out an example cost breakdown in California (cost changes from state to state)
| Gestational Surrogate Compensation Surrogate mother pay varies based on first time or experienced surrogate fee and single versus multiple pregnancies |
|
| Base Pay for first-time surrogates – California Surrogates (paid in monthly installments, after detection of fetal heartbeat) | $50,000.00 |
| Base pay for first time surrogates – All other States (paid in monthly installments, after detection of fetal heartbeat | $40,000.00 |
| Additional surrogate compensation for an experienced surrogate | $5,000.00 |
| IVF Embryo Transfer Fee (upon completion of embryo transfer) | $1,000.00 |
| Monthly miscellaneous allowance (once matched, surrogate is compensated $200 per month for misc. expenses for approximately 12 months) | $2,400.00 |
| Multiples Fee – Twin pregnancy | $5,000.00 |
| Multiples Fee – Triplet pregnancy | $10,000.00 |
| Mock Cycle during testing phase | $300.00 |
| Cancelled Cycle | $300.00 |
| Invasive procedure: Amniocentesis, CVS, Cerclage, D&C, Fetal Reduction | $500.00 |
| Termination of Pregnancy | $1,500.00 |
| Loss of Tube and/or ovary | $1,500.00 |
| Ectopic pregnancy | $1,000.00 |
| Cesarean Section | $3,000.00 |
| Hysterectomy (loss of uterus up to 6 months postpartum) | $5,000.00 |
| Surrogate’s compensation for lost wages if surrogate is employed in the event of physician ordered rest | costs will vary |
| Screening Costs | |
| Psychological Screening – surrogate, spouse, and intended parents | $1,000.00 |
| Criminal Background Investigation – surrogate and spouse | $126.00 – $402.00 |
| Criminal Background Investigation – intended parents | $126.00 – $402.00 |
| Medical Screening of Surrogate and Spouse | as determined by IVF physician |
| Legal Fees | |
| Drafting of Gestational Surrogacy Contract for Intended Parents | $2,000 – 2,750.00 |
| Review Gestational Surrogacy Contract on behalf of Surrogate | $1,000.00 |
| Establish Parentage | $4,000.00 – 7,000.00 |
| Trust Account Management | $1,000.00 – 1,500.00 |
| Psychological Support | |
| Monthly surrogate support group meeting in addition to 90 minutes of phone/email support each month for Surrogate and Intended Parents, phone support pre & post embryo transfer, post-pregnancy test, and postpartum | $2,500.00 |
| Other Costs Paid by Intended Parents | |
| Insurance verification of private health insurance policy (as needed) | $200.00 – $350.00 |
| Term Life Insurance Policy of $250,000 for surrogate (approximate cost) | $500.00 |
| Surrogate’s health insurance (approximate cost if using her own insurance) | $10,000.00 – $15,000.00 |
| Hotel and travel arrangements for surrogate during embryo transfer and physician mandated bed rest (approximate costs may vary) | $1,500.00 |
| Surrogate’s compensation for lost wages if surrogate is employed in the event of physician ordered rest | costs will vary |
| Medications for surrogate during IVF process and pregnancy | costs will vary |
| Professional Fees to your IVF physician for embryo transfer cycle | costs will vary |
| Monitoring for surrogate if she lives outside the area of your IVF physician | costs will vary |
Have more questions? Make sure to visit our surrogacy board to learn more