Persistency: measure it from payments, not status
The short answer
Persistency is the share of policies still paying after a set number of months. Policy status can show active while payments fail, so measure it from payment records, and treat thin payment history as unknown rather than as a lapse.
What persistency measures
Persistency is the share of policies still paying after a set number of months. It is the clearest single read on the quality of a book: whether clients understood what they bought and can keep paying for it.
Why policy status alone misleads
A policy can show as active while its last payments failed, and carrier status can trail what happened at the bank. A persistency number built only on status can look healthier than the book really is.
Payments tell you what actually happened. When a payment for month six is on record, the policy paid month six.
Be honest about thin data
A payment ledger with gaps can make a missing record look like a lapse. Before trusting a persistency figure, check how much of the expected payment history is actually recorded, and treat a sparse book as unknown rather than as bad.
Persistency by agent and carrierHow owners track persistency across a downline.Questions owners ask
Which month matters most?
Owners often look at month 13 because it covers the first full policy year, but early months show problems sooner. Watch both.
Why does my persistency say "not enough history"?
Too few policies have reached that month, or too little payment history is recorded to give a fair number.
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What a chargeback actually costs a final expense agency
The short answer
A chargeback is the carrier taking back the unearned part of an advance when a policy lapses early. The cost to an owner is every advanced policy across every agent that misses payments in its first months. The fix is seeing those missed payments while there is still time to save the policy.
Lapse pending: the window owners can still save
Lapse pending means a payment was missed and the policy is in its grace period. Coverage is still in force, but the policy lapses if the payment is not made before the window closes. Work these policies first: most clients still want the coverage.