A policy lapse is never just a missed payment. It is an early warning sign that something in the client journey is breaking down. In many funeral policy businesses lapses are treated as minor admin issues. Follow up next week. Send another reminder. Wait and see.

By the time the team reacts the damage is already spreading.

The true cost of a lapsed policy goes well beyond the premium itself. The encouraging part is that most lapses can be predicted and prevented with the right technology and engagement strategy in place.

What a Lapsed Policy Really Costs You

1. Lost Recurring Revenue
A single missed premium often becomes multiple missed payments very quickly. The real loss is not only the income but the client relationship that may never recover.

2. Increased Administrative Work
Your staff must now chase payments, update statuses, correct errors, and manage reinstatements. This wasted effort becomes a silent cost that grows every month.

3. Damaged Client Relationships
When members feel blindsided by a lapse, confusion and frustration follow. Questions about claims and cover become difficult to answer and trust is weakened.

4. Reinstatement Barriers
Reactivating a policy usually requires paperwork, approvals, and additional checks. This slows your team down and creates friction for clients.

Prevention is Cheaper than Recovery

Protecting a client early is significantly easier than trying to win them back later. With the correct tools your team can reduce lapse rates, protect revenue, strengthen loyalty, and reduce administrative strain.

How POL360 Helps You Prevent Lapses Before They Happen

This is where intelligent workflows and real customer engagement come together. POL360 gives you the tools to intervene early and prevent policies from falling through the cracks.

1. Automated Lapse Rules
Set exact parameters for consecutive missed payments. POL360 alerts your team early and acts long before a policy becomes unrecoverable.

2. Smart SMS Reminder Workflows
Members receive timely reminders about outstanding premiums and clear instructions on how to catch up, reducing avoidable lapses.

3. Multiple Payment Options
Clients can settle arrears through a range of supported payment methods that suit their circumstances. This keeps policies active even when traditional payments fail.

4. WhatsApp Self Help Journeys
Members can update details, request balances, generate payment numbers, and make payments directly through WhatsApp without contacting the call centre.

5. Behaviour Based Risk Indicators
POL360 highlights members who show risk patterns such as repeated failures, erratic payments, or long gaps in activity. This allows your team to act ahead of time.

6. Lapsed Member Re Engagement Strategy
Not every lapse is permanent. Many members lapse due to genuine life events. Calling them after three months to check whether circumstances have improved often leads to policy retakes. POL360 supports this by generating clean, actionable call lists.

7. Clear Reporting and Real Time Insights
Arrears reports, lapse trends, age analysis, and group performance dashboards help management respond immediately before issues escalate.

Final Thought

A policy lapse is not a dead end. It is the beginning of a conversation your business should be having earlier. With stronger systems and smarter workflows, lapses do not need to be surprises. They become preventable.

POL360 supports funeral administrators by shifting them from reaction to prevention and from frustration to control.

To see how POL360 can help you reduce lapses and improve customer retention:

Email info@pol360.co.za
Website www.pol360.co.za
Telephone 011 568 1018

Let us protect your clients and your business together.