Can We Afford Surrogacy on a $100,000 Salary?

Affording surrogacy on a $100,000 salary is possible for many families, but it will require careful planning and consideration.

Budgeting and financing part of the cost of surrogacy may mean that your family can make surrogacy work financially.

We can help you get a complete cost breakdown from a surrogacy specialist. In this article we will provide information for affording surrogacy on $100,000 and some possible scenarios for how to plan.

Can We Afford Surrogacy on a $100,000 Salary?

It’s possible to afford surrogacy on a $100,000 salary. While surrogacy costs vary depending on factors like location, the surrogate’s compensation and medical expenses, surrogacy typically costs around $169,900-$179,000+.

Surrogacy involves a variety of expenses, including:

Planning Your Budget​: Cost Saving Tips

To reduce the overall costs of surrogacy, here are some options:

• Using donor embryos rather than creating embryos
• Working with a surrogate in a state with lower cost of living
• Working with a first-time surrogate
• Asking your IVF clinic if it is possible to receive donated unused IVF meds
• Seeing if insurance will cover surrogacy or IVF
• Enrolling in an identified surrogacy program if you know someone who is willing to be your surrogate

How Can I Afford Surrogacy on a $100,000 Salary?

Affording surrogacy on $100,000 will be different depending on what your situation is, but for many families it will take a combination of savings and loans.

You may also have options like 401k withdrawal, employer benefits, HSA or FSA, and grants and crowdfunding help close any gaps for some families.

Budgeting

Affording surrogacy can be daunting, but by managing your finances strategically, it’s possible to make it work even on a modest salary. Here’s a guide to setting a budget and saving effectively:

• Slash Unnecessary Expenses: Begin by evaluating your monthly spending. Look at areas where you could cut back, like subscription services, luxury purchases, or entertainment expenses. These small changes can help you free up more money for your surrogacy savings.
• Open a Dedicated Savings Account: A great way to stay on track is by opening a separate savings account specifically for surrogacy. This way, the money you’re saving is not mixed with your regular funds, making it easier to monitor your progress and avoid spending on other things.
• Establish a Savings Timeline with a Spreadsheet: Build a detailed budget using a spreadsheet, mapping out how much money you need to save and by when. This timeline will keep you accountable and allow you to adjust if necessary. Regular updates on your savings goal will help you stay focused.
• Budgeting Tools and Apps: Apps like YNAB, Mint, and Rocket Money can help you stick to your plan. These tools allow you to set up budgets, track expenses, and receive reminders about your savings goals, keeping you on top of your surrogacy fund.
• Account for Extra or Unexpected Costs: Surrogacy comes with potential hidden costs, such as legal fees, medical expenses, or travel costs for your surrogate. Factor in an extra cushion of savings to prepare for these additional expenses. Consider keeping a separate emergency fund as well.

Financing Options

In case saving alone doesn’t seem like enough, there are several other financing routes to consider for affording surrogacy:

• Personal Loans: Many people take out personal loans to help cover the costs of surrogacy. These loans often offer fixed monthly payments and interest rates. Before committing, make sure to compare different lenders for the best rates and terms.
• Loans Specific to Surrogacy: Some financial institutions specialize in offering loans designed specifically for surrogacy. These loans often have more favorable terms, such as higher borrowing limits or longer repayment options, making them a good choice for intended parents.
• 401(k) Withdrawals and Loans: If you have a 401(k) plan, you may be able to access funds through a loan or withdrawal. While taking out a loan from your 401(k) may be an attractive option, remember that withdrawals are subject to tax penalties, and loans must be repaid within a set period.
• Home Equity Line of Credit (HELOC): If you own a home and have substantial equity, you may qualify for a HELOC. This type of loan offers access to a revolving line of credit based on your home’s value, typically at a lower interest rate than personal loans.
• Grants and Financial Aid: Some organizations provide grants that are specifically aimed at helping individuals or families who are struggling to cover surrogacy costs. Although competitive, these grants can significantly alleviate some of the financial burdens.
• Employer Benefits and Health Savings Accounts (HSA): Some employers offer fertility benefits that can cover surrogacy expenses, so it’s worth checking with your HR department to see if this applies to you. Additionally, if you have an HSA, you can use the funds for certain medical surrogacy costs, as long as the expenses meet HSA guidelines.

You can reach out to us and get more information on how to manage your finances during surrogacy, or read about affording surrogacy here.

Examples of Financing Surrogacy

Here are some examples of how you might be able to afford surrogacy with savings and loans:

Example Surrogacy Budget #1: 5-Year Savings Plan

Total Cost of Surrogacy: $180,000

Starting Savings: $20,000

Save $1,500 per month x 5 years =$90,000

Home Equity Loan: $60,000 at 8%, 4 year term ~$1,500/month

Example Surrogacy Budget #2: Loan Heavy 2-Year Plan

Total Cost of Surrogacy: $180,000

Starting Savings: $30,000

Save $2,000 per month x 2 years = $48,000

Personal Loan: $102,000 at 6%, 4 year term ~$2,400/month

I Can’t Afford Surrogacy—What Are My Options?​

Despite all of their best efforts, sometimes families look at the numbers and things don’t add up for surrogacy. If your family is in that position, you still have options.

Wait and Save

If you are sure that surrogacy is the best path for your family, the good news is that it is available to you later in life—as late as into your 50s. So if circumstances aren’t right now, you may still have time to save.

It is also possible that life events make it possible in the future. Things like relocations, raises and promotions, and lifestyle changes might mean that down the road your family can consider the option again.

Choose an Alternative Path

Adoption and IVF are often considered along with surrogacy, and sometimes families decide that these options are equal or better options compared to pursuing surrogacy. You can talk to your doctor about whether IVF is still possible in your situation, or learn more about adoption here.

Where Do I Start?

 You can reach out to us and get more information on how to manage your finances during surrogacy, or read about affording surrogacy here.

Frequently Asked Questions

What is the best compensation for a surrogate mother?

Compensation for a surrogate can be as high as $110,000 depending on the surrogate’s location, qualifications, and experience as a surrogate.

What disqualifies you from being a surrogate?

Several factors can disqualify you from being a surrogate including health conditions that could cause complications in pregnancy, age, and lack of previous successful pregnancy.

Does insurance cover surrogacy?

Insurance can cover surrogacy in some cases, but in most cases, insurance will only cover all or part of the medical costs of pregnancy, and the intended parents will be responsible for surrogate compensation and expenses for things like legal and agency fees.

Which is cheaper, IVF or surrogacy?

IVF is used as a part of surrogacy, which means that surrogacy is usually more expensive than IVF. However, in some cases families may spend more on IVF with multiple attempts and may not find success.