Navigating the Finances of Fertility Choices and Adoption

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The journey to parenthood is a deeply personal and often challenging one, particularly for those facing fertility issues. In recent years, advancements in medical technology have provided individuals and couples with more options than ever before. However, these options often come with significant financial considerations.

As someone who has personally gone through this process, finally conceiving my daughter through in vitro fertilization (IVF), I know firsthand both the emotional and the financial challenges the process can bring. I found that being educated and prepared about the different financial aspects is a good starting point for the journey ahead.

What follows are several options for those wanting to tackle fertility challenges and grow their family, and some of the financial considerations you’ll face if you decide to take this on.

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Intrauterine insemination (IUI)

IUI is a fertility treatment that involves placing sperm directly into a woman's uterus to facilitate fertilization. While IUI is generally less invasive and expensive than IVF, costs can still add up. On average, a single IUI cycle can cost between $500 and $4,000, depending on factors such as medication, monitoring and clinic fees.

In vitro fertilization (IVF)

IVF is a fertility treatment where eggs are retrieved from the ovaries and fertilized with sperm in a laboratory. The fertilized eggs (embryos) are then transferred to the uterus. IVF can be an effective option for couples struggling with infertility and has a higher success rate than IUI, but it also comes with a hefty price tag. The average cost of a single IVF cycle in the United States is around $12,000 to $14,000 — not including medication costs, which can add an additional $3,000 to $6,000 or more. Also, many couples require multiple IVF cycles to achieve a successful pregnancy, further adding to the overall cost.

Insurance coverage for IVF varies widely. Some states require insurance companies to cover at least a portion of the costs, while in other states, no coverage is mandated. As a result, many couples are left to shoulder the financial burden themselves. Some employers will offer some type of assistance for IVF, so it is always wise to check if this is a benefit offered.

Additionally, some IVF facilities will have different loans and payment plans available. Just be sure to factor the payment plans into your budget to ensure that your other long-term goals won’t be hindered.

Surrogacy

Surrogacy is an option for individuals or couples who are unable to carry a pregnancy themselves. The costs of surrogacy can vary widely depending on a number of factors, such as whether a traditional surrogate or a gestational carrier is used.

A traditional surrogate donates her eggs for the pregnancy and so has a genetic link to the baby, while a gestational carrier does not provide her egg and has no biological link to the baby.

Many other factors, such as legal fees, medical expenses and compensation for the surrogate, impact the cost. On average, the total cost of surrogacy can range from $100,000 to $225,000 or more.

Adoption

Adoption is a wonderful way to build a family and provide a loving home to a child in need. However, the financial costs associated with adoption can be substantial, and the process can be long. The average foster care adoption costs about $1,500. On the other hand, a domestic adoption can range from $20,000 to $45,000, and international adoptions can cost anywhere from $35,000 to $70,000. It’s important to research all the opportunities available if you choose this route.

Adoption costs can include agency fees, legal fees, home study fees, travel expenses and other related costs. The process can also be lengthy, taking anywhere from months to several years, so this is something you should be mentally prepared for.

To help offset some of the expenses of adoption, there are grants that individuals or couples can apply for, and even some employers offer various forms of financial assistance and benefits. There is also a one-time federal tax credit available to adopting families; the maximum for 2024 is $16,810 per child.

Potential costs — and potential, uncountable benefits

For me and my family, going down the route of using assisted reproductive technology made sense. We were able to financially prepare for it — and lucky enough for it to eventually work.

Ultimately, the decision between IUI, IVF, surrogacy and adoption is a personal one that should be made based on your individual circumstances, including financial resources, health considerations and personal beliefs.

All options have the potential to fulfill the dream of parenthood, but it's vitally important to carefully weigh the costs and benefits of each before making a decision. You’re laying the groundwork for your family’s future, including the ongoing financial commitment of raising a child, which in the United States averages between $16,227 and $18,262 a year for a child born in 2023.

Therefore, it's essential to consider not only the immediate costs of fertility treatments but also the long-term financial implications of starting and raising a family.

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Julia Pham joined Halbert Hargrove as a Wealth Adviser in 2015. Her role includes encouraging HH clients to explore and fine-tune their aspirations — and working with them to create a road map to attain the goals that matter to them. Julia has worked in financial services since 2007. Julia earned a Bachelor of Arts degree cum laude in Economics and Sociology, and an MBA, both from the University of California at Irvine.