IVF and infertility financing is scary! It’s so scary that banks and finance companies have left the market. Taking a medical loan in advance of losing an income, just as expenses rise is one way people develop bad credit.
An IVF loan allows you to begin your treatments right away. But infertility treatment costs are high enough already without adding financing costs. And consider how difficult it will be to repay the loan when mom takes an unpaid maternity leave, or if complications result in unplanned time from the job prior to delivery.
Before taking any IVF financing or infertility loan consider these three options first:
- Ideal financing – How to get an insurance company to foot the bill
- Interest free loans – Use your FSA to get a loan from your employer
- Loan security – How supplemental insurance can repay your loan
Find insurance that covers IVF. Nothing beats having an insurance company foot some or the entire bill for your IVF. Why borrow money? If only it were that easy. But given the stakes, anything that improves your odds for finding coverage or cutting your costs pays huge dividends in the end. Make sure you explore all your alternatives before piling up debt you may not be able to repay.
Protect your income when borrowing money! The challenge with financing any infertility treatment is that income is needed to repay the loan. If mom is working and her income was used to qualify for the loan, then odds are that income is needed to make ends meet. A pregnancy and child increase costs. Make sure you take steps to lock in her income before getting pregnant, because she may miss work to recover from childbirth.
IVF Financing Security – Supplemental Insurance
IVF and infertility financing is risky business as mentioned above. If you are unable to pay for your infertility or IVF treatments when both mom and dad are healthy and working, what will happen when you have the extra payments but mom is out of work during her maternity leave, or longer if complications crop up?
Supplemental insurance is a great way to create infertility loan financing security and protect your credit rating. Buy the coverage before beginning your treatments and replace mom’s income during her maternity leave and in case she experiences complications, gets sick, or suffers an injury. Plus, additional benefits may be paid if your infertility treatments trigger a multiple pregnancy which does not go full term.
IVF Financing and Loans Now Hard to Find
In the past, couples were able to take out medical loans to help cover the costs of IVF and other infertility treatments. With the financing meltdown that occurred around 2007, many banks and healthcare financing companies pulled out of this market. The risks were always very high for a very simple reason; couples needing cash to finance infertility treatments are very poor credit risks.
Even couples with top-notch FICO scores can get into serious financial trouble when taking out infertility loans. Often, they spent down most of their cash reserves on less expensive treatments, before seeking a loan to pay for IVF. Sometimes the only equity a couple has left is in their house. Home equity loans can help spread payments out over time, and the interest costs may be deductible. But if problems crop up from the resulting pregnancy, do you really want to put your home on the line?
Then mom gets pregnant. IVF pregnancies are often high risk meaning extra medical bills, combined with lost income for a pregnancy leave for bed rest. Then comes a preterm delivery for multiples with even more expenses. Then mom takes an unpaid maternity leave, followed by additional lost income caring for sick infants. And then her employer moves her health insurance coverage onto COBRA driving cost even further.
Get the picture? Would you lend your hard earned money to somebody likely to experience these financial challenges? As of 2012 the primary lender in this arena, Capital One, publishes on its website that they are no longer accepting healthcare financing applications. Now you know why.
But financing options do exist, even for people with bad credit.
Zero Interest Loans for People with Bad Credit
If your employer(s) offer Flexible Spending Accounts (FSA) you have an interest free infertility or IVF financing option right under your nose.
- IVF costs tax deductible and you can reduce costs by one third or more.
- When you time your cycle properly you may get a 52 week loan from your employer with no credit check needed.
- If you leave your employer any time during the plan year you are not responsible for the remaining balance. Your employer just gave you an IVF donation grant. Many women stop working when they get pregnant, so this scenario can happen.
The financing qualifications are easily met; even people with bad credit can get this infertility loan. If both husband and wife have jobs where employers offer an FSA, you may be able to double the amount of your loan. You are guaranteed to qualify. The only qualification is whether you are willing to participate.
Get an interest free loan courtesy of your employer. Many couples are completely unaware that employers offer interest free loans to employees – even those with bad credit. In addition, these loans actually cut overall costs by one third or more. Flexible spending accounts can produce financing by timing your treatments with the beginning of your plan year.
You elect to contribute $5,000 into two FSA plans for the year beginning January 1, and to make contributions of almost $100 per weekly over the next year. You undergo IVF treatments on January 1, incurring $5,000 or more in costs. The entire $5,000 is payable immediately by your employer – before you make your first contribution. Your obligation is to continue making $100 contributions over the next twelve months directly from your paycheck.
Your $100 weekly payroll deduction reduces the amount you pay in FICA, Federal and State income taxes. Not only have you given yourself an interest free IVF loan, you cut your costs by 1/3 or more at the same time.
You have a rare opportunity to plan an unreimbursed medical expense at a time most convenient to you. Take advantage.
Sources: Capital One Medical Financing