What Is Adoption Insurance?

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  • Written By: Mary McMahon
  • Edited By: Nancy Fann-Im
  • Last Modified Date: 30 August 2019
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Adoption insurance is an insurance product available for prospective adoptive parents to help them cover costs associated with adoption as well as losses that may occur when an adoption fails. This is a highly specialized type of insurance and may not be readily available. Parents preparing to adopt may want to discuss adoption insurance with a counselor or representative of an adoption agency to get information and advice on the best policy for their needs. An insurance agent can provide a referral if her agency does not offer this product.

The process of adoption can be time consuming and expensive. Parents typically need to pay for a home study and may also have costs like travel, maternity costs for the birth mother, and so forth. While adoptive parents are prepared to pay these costs as part of the process of an adoption, sudden expenses can come up, and an adoption insurance policy can help meet them. A common approach is to allow policyholders to borrow against the value of the policy to pay for expenses.


Adoptions can fail for a wide variety of reasons, and this can be a concern for adoptive parents. They may spend a considerable amount of money on an adoption that does not go through, and this could make it more difficult to pursue a second adoption. Adoption insurance will reimburse parents for these costs so they can start the process again. This can reduce the risk of only having one chance at adoption because of the high expense.

The cost of an adoption insurance policy can vary. Policyholders will need to provide some information to the insurance agent and can choose between several levels of coverage. If they are not sure about what kind of coverage they need, the insurance representative will usually have advice. More comprehensive coverage is more expensive, but could be a cost-effective decision for adoptive parents who cannot afford to take the loss if an adoption doesn't work out.

Some adoption agencies may have a preferred insurance partner or recommendations based on the past experiences of their adoptive parents. Their staff can provide information about available policies along with contact information for various insurance companies. It is always a good idea to get quotes from at least two companies to learn more about the range of options available before making a decision. One firm may offer better coverage or a much more affordable policy option.


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