Persistency

Why it matters

Carriers watch it closely, since early lapses cost them money. Agents with strong persistency may earn bonuses and face fewer chargebacks. Families who buy a policy they can afford and set up automatic payment help keep it in force. Exact measures differ by carrier. Example: if 90 of 100 policies remain active at month 13, persistency is 90 percent.

Source: law.cornell.edu

Where we use this term

• Life insurance chargebacks explained: how they work and how to protect your cash flow