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.
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.
