Final Expense — Glossary

What is Persistency?

The single metric that determines your FE commission level and IMO standing.

Definition

Persistency is the percentage of issued life insurance policies still in force after a given duration — most often measured at 13 months. A persistency rate of 80% means 80 out of 100 issued policies were still actively paying premiums 13 months after issue. Carriers also track 25-month, 37-month, and lifetime persistency. In FE, the 13-month figure governs nearly every economic relationship: commission advance level, chargeback recovery percentage, IMO contract retention, and renewal economics.

Why Persistency Matters

Per LIMRA, the average industry-wide FE 13-month persistency runs 75–82%. Carriers underwrite their commission and reserve assumptions to a roughly 80% baseline. If your agency drops below 70%, the carrier loses money on you and they will respond with reduced advances, slower payments, or termination.

80%
Industry baseline FE 13-mo persistency
13
Months to fully earn FE advance
75%+
Common IMO advance-cut threshold

Key Points

  • Measured at 13 months (most common), 25, 37, and lifetime
  • Calculated: (policies in force at month X / policies issued) × 100
  • Carriers cut advance % when persistency drops
  • Lapse triggers: NSF drafts, suitability mismatch, replacement
  • Day-91 lapses are the worst — full chargeback at the agent level

Build the Persistency Workflow Inside AgentTech

Use AgentTech's built-in CRM inside the FE dialer to schedule day-30 welcome callbacks, segment your book by issue month for 13-month cohort tracking, and pull recordings + transcripts of the original sale when a lapse risk surfaces. AI compliance scoring flags sales where suitability or affordability cues were missed — the early-warning signal for lapses 60-120 days out.

Best Practices

Set draft dates 5–7 days after the prospect's monthly Social Security or pension deposit. Confirm bank balance before issuing. Run a day-30 welcome call. Avoid replacing existing FE policies — replacement triggers the same chargeback as a lapse and damages your IMO standing. See FE vs burial vs whole life.

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Frequently Asked Questions

Persistency is the percentage of life insurance policies still in force after a given period — most commonly measured at 13 months. A 13-month persistency rate of 80% means 80 of every 100 issued policies were still paying premiums one year and one month after issue.

Carriers and IMOs measure at 13 months because most agent commission advances are clawed back if the policy lapses within the first 12 months. Hitting month 13 means the agent has fully earned the advance. Industry-standard FE 13-month persistency is 75–82%.

Carriers and IMOs reduce your advance level (e.g., from 75% to 50% advance), increase chargeback recovery rates, or in extreme cases (sub-65% persistency) terminate your appointment. Persistency is the single most important metric for FE agency longevity.

Sell to the right age/income demographic, use suitable face amounts (not over-insured), confirm bank draft funding before issue, set policy effective date 5–7 days after the next paycheck, and follow up at days 30/60/90 with a service call. Running these steps as scheduled callbacks and disposition workflows in your dialer/CRM — rather than spreadsheets — is the difference between a 70% persistency book and an 82% one.

Run Your Persistency Workflow Inside the Dialer

Welcome callbacks, recording, and AI compliance scoring — built into AgentTech at $50/seat.

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References & Authoritative Sources

The information on this page is supported by the following official and authoritative sources.

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