Claire Tomkins, who earned her PhD in applied economics and finance from Stanford University, transitioned from a successful career in consumer finance to entrepreneurship. Her journey into the startup world was largely influenced by her personal experience with in vitro fertilization (IVF), a path shared by numerous Americans seeking to expand their families.

A New Approach to Fertility Financing

As the founder and CEO of Future Family, a San Francisco-based startup, Tomkins is dedicated to changing the landscape of fertility treatment financing. Today, she is also a mother to three children conceived through IVF, which has further fueled her mission.

Fertility treatments such as IVF can exact a significant physical and emotional toll on individuals, compounded by their hefty financial burdens. Average costs for a single IVF cycle range between $15,000 and $20,000, with some exceeding $30,000, according to the U.S. Department of Health and Human Services.

“We clearly needed a financial product for family building for IVF.”

Tomkins emphasizes the necessity of financing options for family planning. “You typically don’t just buy your house in cash,” she says. “You don’t typically buy your car in cash, or your education loan. So we clearly needed a financial product for family building for IVF.”

The Financial Solutions Offered by Future Family

Future Family provides innovative financial solutions, including:

• IVF Payment Plans: Starting at $300 per month, these plans cover clinic procedures, lab work, medications, and more.
• Egg Freezing Payment Plans: Commencing at $150 per month, this option includes all the IVF plan features, plus storage services.
• Insurance Product – Orange Shield: Launched in February, this product offers three coverage levels: $15,000 for one IVF cycle, $30,000 for two cycles, and $50,000 for two cycles with medication support, with an average entry cost of $3,000 down and $999 a month for five months.

“Let’s try and address the financial rollercoaster so you can focus on your own emotional journey.”

All insurance plans from Future Family include a “Baby or Your Money Back” guarantee: if a patient’s IVF cycle fails after two attempts, they can file a claim to retrieve their funds.

Addressing Challenges in the Insurance Sector

Despite identifying a gap in the market for IVF insurance, Tomkins faced skepticism from many in the insurance industry. “A lot of people in the insurance industry felt we were kind of crazy to say we can insure IVF,” she admits. However, she notes that advancing success rates in IVF have made it feasible to mitigate risks through proper underwriting, prompting Future Family to develop a robust actuarial model.

Key considerations included the type of insurance policy to be implemented and how to effectively structure it. “We built a multi-disbursement product [in fertility financing],” explains Tomkins, highlighting their ability to manage various payments to clinics and pharmacies.

After an extensive 18-month development phase that concluded with securing reinsurance from a multi-billion-dollar firm, Future Family was prepared to launch its solutions.

Growth and Future Plans

Since its inception in 2016, Future Family has disbursed over $200 million in credit and supported more than 10,000 patients. The company has successfully raised $48 million in venture capital and recently announced a $400 million financing initiative with Clear Haven Capital Management to bolster its lending capabilities.

“I’m very excited to see that we’re having more national conversations around IVF.”

Tomkins expresses optimism about the increasing recognition of IVF as a standard method for building families. “It’s going to be companies like ours, along with additional support from federal and state policies and employers, that ensure everyone has access to easy, affordable fertility care.”