Chartered Life Underwriter (CLU) Definition
The American College of Financial Services awards the professional designation of Chartered Life Underwriter (CLU). The title has been the standard of excellence for financial services professionals who help clients.
Holders of the CLU designation have completed coursework and examinations in life insurance, taxation, estate planning, and ethics.
The CLU designation is the oldest and most respected professional designation for financial services professionals who help their clients plan for the financial consequences of death.
How Do Chartered Life Underwriters Work?
These experts can assist with navigating the complexity of life insurance, such as how much coverage is required and which annuities to choose. They may also help small firms develop succession plans, organize their tax and legal requirements, and more.
Some CLUs offer insurance products on behalf of insurance companies. As a result, they are well-versed on the many plans available and which would best suit the client’s needs. They can typically answer any questions about life insurance, such as coverage requirements, whether the client needs term or whole life insurance, and which insurer to choose.
Chartered Life Underwriters work with individuals and businesses to help them plan for the financial consequences of death. They use their insurance, taxation, estate planning, and ethics knowledge to develop strategies to meet their clients' needs.
What They Learn
Many topics of personal and commercial financial planning are covered in this program:
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To plan and achieve financial goals, analyze the client's financial life, and identify health and life insurance needs and personal property and liability risks.
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Life insurance and annuity products can help you reach greater financial stability.
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How to run a profitable company with strategic organizational and preventative planning.
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Ways to increase the value of an estate, preserve current assets, and ensure financial stability in retirement.
A financial advisor who has completed the Chartered Life Underwriter program will be well-versed in the following:
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Comprehensive understanding of life insurance underwriting ideas and law in the context of total risk management
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The expertise required to assist customers with their estate planning demands
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Understanding of solutions for company owners and professionals' life insurance underwriting demands
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Easily evaluating insurers
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Choosing an insurance provider by establishing criteria
Qualifications
Individuals must pass eight 100-question, two-hour exams and finish five core courses plus three optional courses to receive the CLU.
Other topics addressed in the course include financial planning, health insurance, income taxation, group benefits, investments, and retirement planning.
Additionally, the credential requires 30 hours of continuing education every two years, which can be revoked for unethical behavior by The American College's Board of Trustees' certification committee.
Curriculum
The American College of Financial Services' Chartered Life Underwriter program consists of different required and elective courses.
Required Courses
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311: Fundamentals of Insurance Planning discusses the various forms of insurance and their applications in personal financial planning and risk management techniques.
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323: Individual Life Insurance covers the different types of life insurance policies, their features, their work, and their uses in financial planning.
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324: Life Insurance Law examines the legal aspects of life insurance, including contracts, regulation, and taxation.
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330: Fundamentals of Estate Planning introduces students to the concepts of estate planning and the use of life insurance in estate planning.
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331: Planning for Business Owners and Professionals covers the different types of business entities, their tax implications, and the use of life insurance in business planning.
Elective Courses (Choose 3)
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300: Financial Planning: Process and Environment covers the financial planning process and the different types of financial planning tools and techniques.
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313: Individual Health Insurance covers the different types of health insurance policies, their features, their work, and their uses in financial planning.
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321: Income Taxation covers the different types of taxes, their implications, and how they can be used in financial planning.
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325: Group Benefits cover the different types of group benefits, their features, their work, and their uses in financial planning.
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326: Planning for Retirement Needs covers the different types of retirement plans, their features, their work, and their uses in financial planning.
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328: Investments cover the different types of investments, their features, their work, and their uses in financial planning.
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334: Estate Planning Applications cover the different types of estate planning techniques and how they can be used in financial planning.
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375: Introduction To Disability Income discusses the different types of disability income policies, their features, their work, and their uses in financial planning.
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376 Legal & Tax Aspects Of Retirement covers the legal and tax aspects of retirement planning.
Advantages and Disadvantages
Being a Chartered Life Underwriter is a prestigious designation offering many advantages, but there are some disadvantages to consider.
Advantages
Some advantages of being a Chartered Life Underwriter include:
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The ability to offer customers a wide range of life insurance products from different providers.
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A comprehensive understanding of how life insurance works and the various products available.
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The ability to develop long-term relationships with clients and provide them with advice over many years.
Disadvantages
Some disadvantages of being a Chartered Life Underwriter include:
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It can be challenging to keep up with the required continuing education hours.
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The credential can be revoked if the holder is found to have engaged in unethical behavior.
Key Takeaways
The Chartered Life Underwriter (CLU) credential is one of the most respected and well-known professional designations in the life insurance industry.
Individuals who earn their CLU have demonstrated a comprehensive understanding of life insurance underwriting, estate planning, and risk management.
To become a CLU, individuals must pass eight 100-question exams and complete five core courses plus three elective courses.
The curriculum for the CLU credential covers a wide range of topics, including insurance planning, estate planning, taxation, investments, and retirement planning. Additionally, the credential requires 30 hours of continuing education every two years.
Becoming a Chartered Life Underwriter (CLU) is a process that requires dedication and commitment. However, the rewards of holding the credential are significant. They include the ability to offer customers a wide range of life insurance products, a comprehensive understanding of how life insurance works, and the ability to develop long-term relationships with clients.
FAQs
1. What is a Chartered Life Underwriter (CLU)?
CLU is a professional designation in the life insurance industry earned by individuals who have demonstrated a comprehensive understanding of life insurance underwriting, estate planning, and risk management.
2. How do I become a Chartered Life Underwriter (CLU)?
In order to become a CLU, individuals must pass eight 100-question exams and complete five core courses plus three elective courses. Additionally, the credential requires 30 hours of continuing education every two years.
3. What are the benefits of being a Chartered Life Underwriter (CLU)?
Some of the benefits of being a CLU include offering customers a wide range of life insurance products, a comprehensive understanding of how life insurance works, and the ability to develop long-term relationships with clients.
4. What are the disadvantages of being a Chartered Life Underwriter (CLU)?
One of the disadvantages of being a CLU is that it can be challenging to obtain the credential. Additionally, holding the designation requires an ongoing commitment to continuing education credits.
5. Is the Chartered Life Underwriter (CLU) credential worth it?
The answer to this question depends on the individual. However, the CLU credential can be very beneficial for those dedicated to a career in the life insurance industry.
