A policy lapsed early — how much of your advance do you owe back? Find out in seconds.
Carriers advance several months of commission up front. If the policy lapses before that advance is "earned through," you owe back the unearned portion, pro-rated. Final expense advances are commonly 9 months; Medicare Advantage is often paid as-earned or over fewer months — enter your carrier's term.
One lapse is annoying; a wave of them during the persistency window can wipe out a month. Our Commission & Chargeback trackers and the Final Expense Persistency Radar (Excel + Google Sheets) flag every policy still inside its chargeback window so you can save it before it lapses.
Get the chargeback tools on Etsy →When you write a policy, many carriers advance you several months of commission immediately instead of paying monthly. That advance is only fully "earned" once the client keeps paying through the advance term. If the policy lapses, is cancelled, or the client stops paying before then, the carrier takes back — "charges back" — the part you hadn't earned yet.
Generally: advance × (unearned months ÷ advance term). If you were advanced 9 months and the policy lapsed after 4, the 5 unearned months are charged back. Exact schedules vary by carrier.
It matches the advance term. Final expense advances are commonly 9 months; once a policy is past its advance term and "earned through," there's typically no chargeback. Confirm your carrier's terms.
Mostly through persistency — good fit at point of sale, draft-date alignment, and proactive retention contact during the first several months. Tracking which policies are still inside the window is the practical key.