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Unexpected Solution: How Life Insurance Can Help Pay for Fertility Treatments and Adoption Expenses

Fertility treatments can be an expensive and emotionally taxing process. The average cost of a single cycle of in vitro fertilization (IVF) in the United States can range up to $30,000. Adoption is also costly, with private, domestic adoptions costing up to $60,000 or more, according to American Adoptions. This cost can be a significant financial burden for many individuals and couples struggling with infertility. However, there is an unexpected way to help alleviate some of these costs: using life insurance.

Life insurance is often thought of as a way to provide financial protection to loved ones in the event of an unexpected death. However, life insurance policies can also be used to pay for fertility treatments and adoption expenses. Here's how it works.



How Life Insurance Works

First, it's important to understand the different types of life insurance policies. There are two main types: term life insurance and permanent life insurance. Term life insurance covers a set period, typically between one and 30 years. If the policyholder passes away during the term of the policy, their beneficiaries receive a death benefit payout. On the other hand, permanent life insurance provides coverage for the policyholder's entire life as long as the premiums are paid. In addition to a death benefit payout, permanent life insurance policies also have a cash value component that grows over time. Finally, a third type, universal life insurance, combines term insurance with a cash account.

A permanent life insurance policy is the best option for those considering using life insurance to pay for fertility treatments. This is because permanent life insurance policies have a cash value component that can be borrowed against. This means that policyholders can take out a loan against their policy's cash value to pay for fertility treatments.

It's important to note that taking out a loan against a life insurance policy will reduce its cash value and death benefit. Additionally, if the policyholder passes away before the loan is repaid, the amount of the loan plus interest will be deducted from the death benefit payout. However, for individuals and couples undergoing fertility treatment, the benefits of using life insurance to pay for fertility treatments may outweigh these potential drawbacks.

4 Steps for Using Life Insurance to Pay for Fertility Treatment

To use life insurance to pay for fertility treatments, follow these steps:


  1. Review your existing life insurance policies. If you already have a permanent life insurance policy, review the policy to see if it has a cash value component. If it does, determine how much cash value is available to borrow against.

  2. Apply for a new permanent life insurance policy. You'll need to apply for one if you don't have an existing permanent life insurance policy. Be sure to choose a policy with a cash value component, and the premiums are affordable for your budget.

  3. Take out a loan against your policy's cash value. Once you have a permanent life insurance policy with cash value, you can take out a loan against the cash value to pay for fertility treatments. The loan will need to be repaid with interest, but this can be a more affordable option than taking out a traditional loan or putting the expenses on a credit card.

  4. Repay the loan. Once you've used the loan to pay for fertility treatments, you'll need to make regular payments to repay the loan with interest. Be sure to factor these payments into your budget.

The Fertility Rider

Life insurance riders are add-ons to a policy that provide additional benefits. Depending on the rider and the life insurance carrier, riders may come at an additional cost. A fertility rider offers a cash value benefit that can be used to pay for fertility treatment without decreasing the policy's benefits and at no added cost to you.


Using life insurance to pay for fertility treatments or adoption can be a smart financial move to provide for your future and those needing financial support in building their families. By borrowing against a permanent life insurance policy's cash value, you can access the funds you need to pay for expensive treatments without taking on additional debt. However, it's important to consider the potential drawbacks, including a reduction in the policy's cash value, death benefit, and the need to repay the loan. And if you have a life insurance policy with a fertility rider, a cash benefit is provided at no additional cost to you.

Sweet Pea is knowledgeable and licensed to assist you with questions about life insurance policies and determining your needs. If you have questions, please schedule some time to chat with us.



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