An expiration card is a simple document that provides information regarding the date that a specific contract will expire. A card of this type is employed in a number of settings, notably in the insurance industry. The idea behind an expiration card is to serve as a means of alerting all parties involved with the contract that the relationship will end as of a certain date unless appropriate actions are taken to renew the agreement for an additional term.
One of the most common applications of the expiration card is found with insurance coverage. With various types of health, auto and life insurance plans, a policy termination date may be included in the basic terms and conditions that govern the relationship. As that date approaches, the expiration card serves to remind the provider that the contract term is getting closer and the time has come to discuss renewing the coverage with the insured party. By making use of this type of time management tool, an agent can always be aware of which client policies are slated for expiration within the next 30 days and make arrangements to contact those clients to renew the plans and sustain the flow of revenue to the insurance provider.
Along with tracking termination dates on insurance plans, an expiration card can also be used as part of the process of tracking any type of business contract. For example, a company that is providing goods or services to a client at reduced pricing can use this method to enter into new discussions with the client several weeks before that termination date. This can be important, since doing so could mean the difference between the client choosing to renew for another term at the same pricing, or choosing to entertain proposals from competitors.
While a traditional expiration card is a physical card that is used as part of a tickler file system, many software packages integrate the idea of the card into their basic features. A sales database may include the ability to create a virtual expiration card that includes basic information about a customer contract, including the termination date. The end user can then set the system to generate an alert a specified period of time before the termination of the contract, making it easy to schedule a phone call or email to the client and begin work on renewing the agreement. Until the task is completed or dismissed, the system will often continue to remind the user that the need to contact the client is still pending.