Plan in advance for high costs of IVF, surrogacy; consider insurance

Couples opting for surrogacy must bear medical expenses, buy health insurance for the surrogate

Lekhni Ishman, 45, an Instagram influencer who lives in Mumbai, and her husband have been trying to have a child for 12 years. Despite several failed in vitro fertilisation (IVF) cycles, the couple still wants to try a few more times.

“An unsuccessful IVF cycle is both emotionally and financially taxing. We wish we had known what we were getting into financially before taking the plunge. If we don’t succeed, surrogacy is our other option,” says Ishman, whose name was changed in this story to maintain her privacy.
 

IVF: Heavy on the pocket
 

An IVF procedure is expensive. “In India, the average cost of IVF treatment is around Rs 1.5 lakh to Rs 2.5 lakh for a package,” says Madhumathi Ramakrishnan, executive vice-president at Star Health and Allied Insurance.
 

Success of the IVF procedure depends on factors such as the woman’s age, her health, and the quality of treatment. Conceiving a child can take more than one attempt.
 

Most banks do not lend specifically for reproductive treatment. However, couples can take personal loans. “Some non-banking  financial companies (NBFCs) may offer personalised fertility treatment loans, including IVF loans that cater to the very specific requirements of the treatment. Some of these may be offered as unsecured personal loans while others may require collateral,” says Adhil Shetty, chief executive officer (CEO), Bankbazaar.

 

Surrogacy and parents’ responsibilities
 

The Surrogacy Regulation Act of 2021 laid down the dos and don’ts for couples and the surrogate. “Surrogacy has to be altruistic and not commercial, which means the surrogate cannot charge for carrying the child of the intended parents. The medical expenses and insurance coverage of the surrogate and the child are both the responsibilities of the intended parents,” says Ekta Rai, an advocate at Delhi High Court.
 

She adds that the prospective parents must take responsibility for the child and the surrogate mother during the period the latter is taking care of the child.

Heavy financial burden 
 

Surrogacy in India typically costs between Rs 15 and Rs 25 lakh. “To incorporate surrogacy into one’s financial plan, first, calculate the total expenses involved, with a comprehensive breakdown,” says Jay Thacker, a member of the Association of Registered Investment Advisors (ARIA).
 

Surrogacy decisions are time-sensitive, so planning in advance for pregnancy-related expenses is essential. The lead time for prospective parents to arrange surrogacy ranges between six months and three years. The surrogacy process can take between 1.5 and 2.5 years. “The corpus should be primarily built using low-risk, fixed-income instruments with no mandatory lock-in. Options such as bank term and recurring deposits, low-duration and short-duration debt mutual funds, and high-interest savings accounts can be tailored to the lead time available and the expected financial outflows during surrogacy,” says Thacker.

Other goals may have to take a temporary back seat. Says Thacker: “Funds can be diverted from lower-priority goals such as vacations or second homes. Contributions to long-term objectives like retirement may be temporarily reduced, and discretionary expenses can be optimised to redirect income towards surrogacy planning.”
 

Retired Col. Sanjeev Govila, CEO of Hum Fauji Initiatives, a financial planning firm, suggests using liquid funds for very short-term goals.
 

Buy insurance
 

According to the Surrogacy Regulation Act, which came into effect on January 25, 2023, a couple opting for surrogacy must purchase a health insurance policy for the surrogate with a tenure of 36 months. “The policy’s coverage must be adequate to cover the complications that may arise due to pregnancy. The policy must cover postpartum delivery complications as well. The couple should also buy insurance for the oocyte donor for at least 12 months,” says Naval Goel, CEO and founder of PolicyX.com.
 

Star Health Insurance recently introduced surrogacy coverage and oocyte donor coverage. “The surrogacy cover begins from the date when the treatment or procedure is initiated. In the event of a miscarriage due to accident, the insurer provides a lump sum payment to the surrogate mother, according to the policy’s terms and conditions,” says Ramakrishnan.  
 

Siddharth Singhal, business head for health insurance at PolicyBazaar.com suggests conducting a thorough comparison of the health insurance plans available.

Buy a policy that offers coverage to the oocyte donor and caters to inpatient hospitalisation expenses linked to complications arising from assisted reproductive treatment for a 12-month duration. Manipal Cigna Health Insurance and Care Health Insurance have similar policies. Most insurers do not cover the cost of IVF.
 

Earlier this year, Aegon Life launched a policy that provides three years of life cover to surrogate mothers and one year to egg donors.
 

Legal aspects
 

A stipulated time period must elapse before couples can take the surrogacy route. “This law allows Indian heterosexual couples who have been married for at least five years and Indian single women (who are not married but are medically and socially fit) to avail surrogacy services,” says Shashank Agarwal, advocate, Delhi High Court.
 

Prospective parents must bear in mind the legal obligations of surrogacy. “The laws are intended to protect the child. A child born through surrogacy cannot be treated any differently than a child born by any other means,” says Rai. Even if the child is born with birth defects, the intended couple is obligated to accept it.