Policy Laptation Ratio Checker

Life Insurance Policy Laptation Ratio Checker

Total Policies Issued: Number of Lapsed Policies:

What is Policy Laptation Ratio?

Life Insurance Policy Laptation Ratio is an important number in the life insurance business. It tells us how many people stopped paying for their insurance policies out of the total number of policies that were given or sold.

A lapsed policy means the person did not pay the premium (money) on time, so the policy stopped or became inactive.

This ratio helps LIC agents, advisors, and branch managers understand how well their customers are keeping their policies active. It also shows how healthy and strong their total policy records are.

A low laptation ratio is good — it means most people are paying regularly. A high ratio means many people have stopped, and you may need to follow up or remind them.

Policy Laptation Ratio Checker Formula

The Laptation Ratio tells us what percentage of policies have lapsed (stopped due to non-payment) out of the total policies issued.

Here is the simple formula:

Laptation Ratio = (Lapsed Policies ÷ Total Policies Issued) × 100

This formula gives the result in percentage (%). It helps you understand how many people out of 100 did not continue their policy.

Example:
If 150 policies were issued, and 30 of them have lapsed, then:

Laptation Ratio = (30 ÷ 150) × 100 = 20%

This means 20 out of every 100 policies have lapsed.

How Do I Use the Laptation Ratio Checker Tool?

Using the Laptation Ratio Checker Online is very easy. Just follow these simple steps:

1. Enter Total Policies Issued:
   Type the total number of policies you have sold or issued to clients.
2. Enter Lapsed Policies:
   Type how many of those policies have lapsed (stopped due to non-payment).
3. Click on "Calculate Ratio":
   Press the button to calculate the laptation ratio.
4. View the Result:
   You will instantly see the percentage of policies that have lapsed, a summary table, and a bar chart showing Active vs Lapsed policies.

This tool helps you understand your policy health, so you can take action to improve follow-ups and reduce lapsation.

How to Reduce the Policy Laptation Ratio?

Reducing the Policy Laptation Ratio is very important for every insurance agent. A lower ratio means more clients are keeping their policies active, which is good for both the agent and the policyholder.

Here are some smart ways to reduce lapsation:

• 1. Regular Follow-up: Call or message clients before the due date to remind them to pay their premium on time.
• 2. Use WhatsApp Reminders: Send premium reminders, revival messages, and thank you notes using WhatsApp. It's quick and effective.
• 3. Educate Your Clients: Explain the importance of regular premium payments and how lapsation can affect their benefits.
• 4. Help with Auto-Debit: Encourage clients to register for NACH / auto-debit so the premium is deducted automatically from their bank account.
• 5. Track Policies Monthly: Use a policy tracking system or Excel to keep an eye on due dates and lapsation trends.
• 6. Offer Revival Help: If a policy has already lapsed, guide the client on how to revive (in Hindi) it before it’s too late.
• 7. Collect Lapsed Policy List: If you don’t have the list of lapsed policies, collect it from your Development Officer (DO) or your LIC branch office. Then contact those clients, explain the benefits of revival, and help them restart their policy. After revival, your laptation ratio will go down.

By taking care of your existing clients and staying in touch, you can build trust, improve your service, and reduce your laptation ratio successfully.

What Are the Benefits of Low Policy Laptation Ratio?

A low Policy Laptation Ratio means that most of your clients are regularly paying their premiums and keeping their policies active. This shows that you are managing your insurance business in a healthy and effective way.

Here are the key benefits of having a low laptation ratio:

• Better Client Trust: Clients who continue their policies are more likely to trust you and refer you to others.
• Higher Renewal Commissions: Active policies give you regular renewal income every year.
• Stronger Relationship with Branch and DO: Branch managers and Development Officers appreciate agents who maintain low lapsation.
• Chance to Win Awards and Recognition: Agents with low laptation ratios often qualify for LIC club memberships, rewards, and honors.
• Improved Policy Portfolio Quality: Your total portfolio becomes stronger and more reliable.
• Less Follow-up Work: When clients pay on time, you don’t need to spend time chasing lapses and revivals.
• Client Benefits Stay Safe: Your clients remain protected, and their bonuses, claims, and maturity benefits are secure.

In short, a low laptation ratio means you are doing a great job — helping your clients stay insured and building a successful insurance career for yourself.