Surrogacy is a beautiful and enriching experience, but it’s also a complex process that involves logistical and financial considerations. One of the key questions for both intended parents and potential surrogates is how compensation works. Understanding the payment structure and timing is essential for both parties to ensure transparency and build a strong partnership throughout the surrogacy journey.
How Surrogacy Payment Works
Surrogate payment involves a base fee, paid in monthly installments after confirmation of pregnancy. In addition to this base fee, surrogates receive extra stipends to cover expenses such as maternity clothes, travel, and lost wages. These payments are typically managed through an escrow account.
Initial payments cover pre-pregnancy milestones, including contract signing, screenings, and the embryo transfer. The full compensation structure is clearly outlined in the surrogacy agreement, ensuring that both surrogates and intended parents have a mutual understanding and support throughout the journey.
Common Surrogacy Financing Questions
Understanding the associated costs and the structure of surrogate compensation is crucial for making informed decisions. Frequently asked questions include:
How Much Do Surrogates Get Paid?
While compensation varies, first-time surrogates can expect to earn up to $76,000, which includes a base fee of $60,000. Experienced surrogates may earn even more. Every pregnancy is different, so compensation packages for surrogate mothers can differ from one surrogacy arrangement to another.
When Are Payments Made?
Surrogates are paid in installments. Initially, they receive smaller amounts before pregnancy begins. Once pregnancy is confirmed, they’ll receive a monthly base pay that continues until after delivery. After delivery, a final lump-sum payment is due for the remaining balance, along with additional payments for specific circumstances, such as C-sections or carrying multiples.
What Expenses Are Covered?
Surrogacy compensation includes the following expenses:
- Health insurance, if a new policy is required
- Life insurance for a one-year term
- Medical screenings
- Legal fees associated with the process
- Medications, fertility treatment, and any related procedures
- Travel expenses
- Coverage for gas, parking, childcare, etc.
- Maternity clothing
- Housekeeping services
- Optional support group meetings
Is the Money Taxable?
Tax treatment varies (some agencies issue 1099s), so surrogates should consult a tax professional.
Surrogacy Payment Myths and Misconceptions
Surrogacy can often be surrounded by misunderstandings and misinformation, particularly regarding payment structures and responsibilities. Some common myths and misconceptions about surrogacy payments include:
- Surrogates are only in it for the money: Surrogates are primarily driven by a deep desire to help others build families, with compensation recognizing the significant physical and emotional commitment, time, and risks involved.
- All surrogates are paid large sums: Many believe surrogates receive excessively high payments, but this isn’t always the case; compensation varies significantly based on several factors.
- Intended parents cover all expenses up front: It’s a myth that all financial responsibilities are paid in one go; many payments are made in installments throughout the surrogacy process.
- All surrogacy agencies are the same: This misconception overlooks the differences in regulations, support, and services offered by various agencies, which can impact payment structures.
Understanding these misconceptions is crucial for anyone considering surrogacy, ensuring a more informed and supportive experience for everyone.
Transparency and Support Through the Financial Process
Surrogacy is a remarkable journey that includes safeguards to ensure all parties remain aligned throughout the process. Surrogacy agencies play a crucial role in assisting both surrogates and intended parents. They help navigate financial matters, connect individuals with lawyers experienced in fertility law, and address questions and concerns from start to finish.
At the International Surrogacy Center, we’re dedicated to helping both surrogates and intended parents navigate every step of the surrogacy journey, including all financial aspects. For more information, please feel free to contact one of our offices at (619) 591-9113 (CA) or (303) 539-9345 (CO).