A lapsed policy hurts twice. The family loses cover they were counting on, often without realising it, and the parlour loses a premium it had already worked to earn. Most lapses aren’t a decision to leave. They’re a missed month that turns into two, then three.
The good news is that a simple, consistent routine catches most of them early.
1. Know who is behind, every day
You can’t follow up what you can’t see. Keep one list of families behind on payments, sorted by how much is owed and how close they are to lapsing. Check it daily, not at month-end. A family one month behind is easy to help; a family three months behind is often already gone.
2. Remind before the due date, not after
A short SMS a few days before the premium is due prevents many missed payments in the first place. Keep it friendly and specific: the amount, the date and the policy number.
3. Follow up a missed payment within days
If a payment is missed, send a second message, then call. The call is where you learn the real reason: lost job, changed number, moved town, or simply forgot. Each has a different fix.
4. Warn clearly before cover is lost
Before a policy lapses, tell the family plainly what will happen and the last date they can pay to keep their cover. People act on deadlines.
5. Make paying easy
- Accept the ways families actually pay: cash at the counter, EFT, card, debit order or retail payment points.
- Give a receipt every time, printed or by SMS, so families trust their payments are recorded.
- Keep contact numbers up to date. A reminder sent to an old number does nothing.
6. Make coming back simple
Some families will lapse anyway. Make it easy to renew, and decide in advance how you treat waiting periods for returning members, so staff give the same answer every time.
Measure it
Track three numbers each month: how many policies are behind, how many lapsed, and how many were renewed. If the first number falls, the second will follow.
JenFlow does most of this routine for you: an arrears list across branches, SMS reminders before premiums are due, missed-payment and lapse warnings, receipts by SMS, and renewal of archived policies. See payments and arrears.