What’s the Best Way to Pay for IVF?
The average cost of IVF in the U.S., including everything from medication to doctor’s visits, is around $18,000. Unlike saving for a house, a wedding, or even college, IVF is usually an unexpected expense that people haven’t financially prepared for. Studies have shown that the biggest barrier to starting IVF is financing. Fortunately, there are a lot of options available to pay for IVF, so you can move forward with your dream of having a baby.
Let's take a look at how other payments methods compare to a personal fertility loan with Future Family:
In a nationwide study, more than 50% of people pay for fertility treatments with a credit card.
Credit cards are one of the most popular ways to pay for IVF because of their convenience and speed, but high-interest rates can make this an expensive choice in the long run. Most credit cards have an average interest rate of 19%, which means more of your money is going towards paying off interest rather than your fertility treatment.
Some people consider charging their IVF treatments on credit cards with an introductory 0% interest rate for the first year, which can be a great solution if you can pay it all off that first year. However, it’s best to research what the interest rate is after the year is up, as it can jump as high as 25%. Monthly payments on a $20,000 credit card balance can easily be upwards of $600 a month.
Credit cards should have a place in your financial world. It’s a good option for ongoing, small purchases, but heightened credit card use can lower your credit score. Also, $20,000 is a higher amount than many people have on their credit cards, making it tough to include any additional charges that may come up.
Saving money for IVF is a very sound way to pay for IVF because there is no interest rate. However, if you are dipping into your rainy day savings account, you may be putting your financial health in jeopardy if an emergency or unexpected expense pops up, like a leaky roof or car trouble.
IVF is one of the few life choices that have a very specific fertility timeline and may not match up with your savings timeline. It can be hard to save $20,000 for IVF if you need to start fertility treatments in the upcoming months.
Borrowing against a 401K/retirement account
It is always tempting to borrow money from your 401K to pay for IVF. Afterall, it’s your money and right now due to CARES Act people can take out funds from their 401K without the 10% surcharge tax if COVID-19 has impacted them financially. However, most financial experts advise against it unless you’ve exhausted most other resources, such as emergency funds or other easily accessible forms of savings.
By borrowing money against your retirement savings, you now have to earn the money, pay taxes on it, then put the money plus interest back into your 401K plan. When you withdraw it later, you'll pay income tax on it again. This defeats the purpose of having a tax-deferred account.
When you borrow money from your 401(k), it also means you are selling your investments. If any of your investments rise in value, you will not get the benefits and profits from them along with the compounding power.
Fertility Treatment Grants
There are more fertility grants available today than ever. Resolve.org, the National Infertility Association, has a great round-up of grants to help people fund their fertility treatments. For many, fertility grants are the perfect solution to paying for IVF.
Most fertility grants are anywhere between $1,000 to $10,000, which can be a huge help towards the overall IVF cost, so check other options as well, like health insurance to pay for any remaining costs. It is also important to check to see if your grant covers medication and other related expenses that can add up fast.
Keep in mind that most grants have specific qualifications from location to an income cap to being evaluated by a board-certified reproductive endocrinologist, which means you may have to do some extra research to find the best grant for your specific circumstances. Grants are a terrific option if your timeline is more open, but please keep in mind that you may not be awarded the grant.
Personal Fertility Loan
Loans are an excellent solution for bigger one-time investments, like IVF or a new car. The interest rate is usually lower with fixed monthly payments over a specific amount of time, which means there are no financial surprises.
A personal fertility loan can be a smart way to pay for IVF. At Future Family, we believe the smart way is a personal fertility loan, allowing you to start your treatments that week. Personal fertility loans have much lower interest rates between 5.99 - 15%, which is better than most credit cards.
To make sure your IVF loan covers everything, Future Family works with you and your fertility clinic to figure out the exact amount your whole IVF treatment will cost, taking into account items like medication or genetic testing. This means that there won’t be any unexpected additional costs you would have to pay. You will be able to go to your fertility clinic or pharmacy and not have to worry about making a payment.
Future Family IVF plans are dedicated to not only saving you money, but lowering your IVF-related stress with additional benefits like bill pay management. Future Family’s membership includes bill pay management, which means all of your bills – from medication to clinic appointments – are handled by your payment specialist at Future Family. You just have your monthly payment on the loan.
Future Family IVF payment plans also include access to a nurse help desk, where you can schedule time to talk to a Fertility Coach to answer any additional questions you may have about your fertility treatments or medication. Future Family’s Fertility Coaches are all registered nurses with years of experience in fertility healthcare and have helped thousands of women through IVF and egg freezing.
In the end you have to make the financial decision that works best with your life and your existing financial situation.
If you have questions or would like more information about how Future Family can create a fertility loan for your specific needs, please feel free to email us at firstname.lastname@example.org. Or, if you’d like to prequalify for a loan at Future Family here.