Nothing hurts an agent’s momentum more than policy lapses and chargebacks. Not only do they impact your income, but they also mean clients are left unprotected—something we all want to avoid. The key to minimizing these issues? Sell responsibly and set your clients up for long-term success.
Focus on Affordability
One of the biggest reasons policies lapse is affordability. Just because a client qualifies for a certain coverage amount doesn’t mean they can comfortably afford it.
By keeping policies within a comfortable budget, you help clients maintain their coverage, reducing financial strain and protecting your business from unnecessary chargebacks.
Educate Clients on Policy Importance
A well-informed client is more likely to keep their policy active. Make sure they understand:
✅ Why they need coverage – Tie the policy back to their family’s financial security.
✅ How the policy works – Explain key benefits and what to expect.
✅ What happens if they cancel – Walk them through the consequences of lapsing their policy, including losing coverage and potentially qualifying at a higher rate later.
Ensure a Strong Application Process
The better the application, the smoother the approval process and the fewer surprises down the road. Always:
✔ Be transparent – Ensure clients disclose accurate medical and financial information.
✔ Double-check bank details – Set up drafts for a day that aligns with their paycheck schedule.
✔ Confirm commitment – Reinforce why they’re taking this step and that they’re ready to follow through.
Build Trust for Long-Term Success
Responsible selling doesn’t just protect your commissions—it builds trust, strengthens client relationships, and creates long-term success. When clients feel they’ve been guided toward a policy that fits their needs and budget, they’re more likely to stay covered and refer others to you.
By following these best practices, you can reduce chargebacks, prevent policy lapses, and set both yourself and your clients up for lasting success!