What Do The Letters CLU Stand For In Relation To An Insurance Agent?

As an insurance agent, CLU stands for Chartered Life Underwriter, which means they took an educational plan of courses and breezed through a progression of tests for their calling. The base passage into extra security deals is finishing an authorizing test. Most are genuinely fundamental, yet CLU is a further developed accreditation, to some degree comparable to an MBA in extra security.

If you want to know more about a Chartered Life Underwriter, you have come to the right place. Read this article to learn all you need to know about a CLU. So, what are you waiting for? Without much further ado, let us jump right in!

What do the letters CLU stand for about an insurance agent?

Have you ever wondered what exactly the letters CLU stand for? If so, then we are here to clear this confusion for you. The letters CLU stand for Chartered Life Underwriter about an insurance agent. A CLU helps you understand life insurance policies in a better way and figure out which approach works best for you. We will further read about what a CLU is and what they do.

What is a chartered life underwriter?

A Chartered Life Underwriter (CLU) is an esteemed accreditation for individuals seeking expertise in life insurance and estate planning. Those holding the Certified Financial Planner (CFP) designation often complement their credentials with a CLU to showcase additional subject proficiency. Achieving this status involves passing a series of rigorous courses and examinations.

Since its inception in 1927 by the American College in Bryn Mawr, Pennsylvania, the CLU has stood as the pinnacle of excellence in the insurance industry. It has been a coveted pursuit for agents specializing in life insurance for business or estate planning purposes.

CLU professionals are adept financial advisors with a specialized focus on insurance, boasting extensive knowledge in life insurance and estate planning. They play a pivotal role in helping clients navigate the intricacies of life insurance, determining optimal coverage levels and selecting appropriate annuities. Moreover, they collaborate with small businesses to address tax obligations, regulatory compliance, and succession planning.

Certified Life Underwriters (CLUs) are invaluable resources for individuals seeking insurance coverage, offering profound insights into various insurance plans. From assessing coverage needs to choosing between term and whole life insurance, CLUs excel in addressing client inquiries effectively.

Life insurance premiums are heavily influenced by medical and familial health histories. However, CLUs are dedicated to securing competitive pricing options, particularly for clients with complex medical backgrounds or heightened risk profiles.

Attaining CLU status necessitates rigorous training in estate planning and life insurance, culminating in comprehensive examinations. Furthermore, CLUs adhere to stringent ethical standards and must possess at least three years of full-time industry experience within a five-year period. Armed with expertise, they guide clients through wills, trusts, and estate planning, offering comprehensive financial advice rooted in insurance proficiency.

The American College remains the sole institution offering formal education for aspiring financial advisors aiming to become licensed life underwriters. The CLU certification continues to represent excellence in the field, maintaining its legacy since the 1920s.

What does a CLU do?

These experts can assist you with exploring the complexities of life insurance, including how much protection you need and what annuities you should consider. They can likewise work with private ventures and assist them with building progression plans, arranging their taxes, and other lawful needs, and that’s only the tip of the iceberg. Some CLUs take a shot at working for insurance companies to sell you arrangements. Accordingly, they know what strategies are accessible and what might be a solid match for your circumstance. They are usually ready to respond to any inquiries about purchasing life protection, including inclusion needs, regardless of whether you need term life or entire extra security and which insurance provider to go with.

The oldest financial credential still in use is the Chartered Life Underwriter (CLU) designation. It has been used by insurance professionals ever since it was developed in 1927 by the American College for financial planning in Bryn Mawr, Pennsylvania, primarily for life insurance agents. This degree is equivalent to a life agent’s CFP (Certified Financial Planner) accreditation for financial advisers. However, there is one significant difference: the CLU may be earned without passing a challenging board test. Compared to its equivalent, it could be a little simpler. All life insurance firms, brokers, and wholesalers who work in the life-saving industry should consider becoming a CLU.

What is the curriculum to become a CLU?

The present course educational plan for the CLU incorporates five required courses. These courses are as follows:

• Fundamentals of Estate Planning
• Life Insurance Law
• Fundamentals of Insurance Planning
• Planning for Business Owners and Professionals
• Individual Life Insurance

Notwithstanding the five compulsory core courses, people should likewise join up with three elective courses. These can be selected from any of the following subjects:

• Estate Planning Applications
• Investments
• Individual Health Insurance
• Group Benefits
• Planning for Retirement Needs
• Income Taxation
• Financial Planning: Process and Environment

Students can complete their coursework in class or online for select courses. One of the primary advantages of this course of study is that you can finish coursework at your movement. Understudies are given four months after enlisting in which to plan their last, most crucial test.

Qualification requirements to become a CLU

The American College of Financial Services runs the Chartered Life Underwriter program. To pick up qualification for the CLU program, you need, in any event, three years of full-time business experience within the five-year window before your affirmation grant date. Undergrad and advanced education mean one year of involvement, and low maintenance experience gets hourly credit. An aggregate of 2,000 hours means you have gained knowledge equal to a single year of involvement.

To acquire the CLU, people must finish five centers and three elective courses and pass eight 100-question, two-hour assessments. Required course titles incorporate Fundamentals of Insurance Planning, Individual Life Insurance, Life Insurance Law, Fundamentals of Estate Planning, and Planning for Business Owners and Professionals. Other course subjects incorporate money-related arranging, medical coverage, pay tax collection, group benefits, ventures, and retirement arranging.

By the end of each course, you’ll need to take and ace a relevant test. These are close-book tests. When you complete your coursework, you will get your CLU assignment. Nonetheless, you’ll have to finish 30 hours of proceeding training at regular intervals to keep up your CLU accreditation.

To receive the CLU, individuals must pass eight two-hour, 100-question exams and finish five core courses plus three electives. The required course titles include:

• Individual life insurance.
• Life insurance law.
• Fundamentals of estate planning.
• Planning for business owners and professionals.

Other course subjects include financial planning, health insurance, income taxation, group benefits, investments, and retirement planning.

Additionally, the designation might be revoked for unethical behavior by the certification committee of the American College’s Board of Trustees. To keep the appointment, 30 hours of continuing education are required every two years.

When do you need a CLU?

CLUs are specialists in bequest arranging and danger to the executives; the same number of them have immense knowledge regarding insurance. These qualities appeal to chartered life underwriters and are amazingly significant for explicit customers. It incorporates the individuals prepared to purchase extra security, need to start arranging their legacy or need direction on wills and trusts.

CLUs, for most, know protection laws and organizations’ contributions. Usually, this degree of aptitude reaches a long way past the abilities of a great many people. Accordingly, it could be helpful to counsel a contracted life guarantor to walk you toward finding a protection strategy that meets your budgetary and individual needs. A CLU can likewise help present your disaster Protection application and keep you refreshed as it measures.

Protection operators are natural salesmen. That can cause them to seem temperamental to numerous individuals searching for a strategy. Then again, CLUs are held to high moral principles, with many working under a guardian limit. It implies CLUs must act with their best money-related enthusiasm consistently.

Cost of working with a CLU

The expenses and fee structures for CLUs vary among financial advisors. Not every firm boasting expertise in risk management and insurance planning employs CLUs. If your CLU functions as an insurance agent, their compensation likely derives from a percentage of the life insurance premiums you purchase. This commission is regulated by the state and is already factored into the premium, sparing you from concerns about additional charges. Alternatively, some agents are salaried employees of life insurance companies, with their income primarily derived from their salaries rather than commissions.

Certain CLUs operate on a fee-only basis, charging for their services rather than earning commissions or salaries. This model is perceived by some as the preferred option, potentially eliminating the risk of biased advice. If you seek a quote for the specific hourly rates these agents charge, direct communication with the CLU is necessary.

Similar to other financial advisors, CLUs offer varying cost structures and fee schedules. Despite claims of proficiency in risk management and insurance planning, not all firms employ CLUs. If your CLU serves as an insurance agent, their compensation may stem from a percentage of the life insurance premiums you purchase. This commission, regulated by the state, is already integrated into the premium, alleviating concerns about additional costs. Alternatively, some agents are salaried employees of life insurance companies, with the majority of their compensation derived from their salaries rather than commissions.

Some CLUs operate solely on a fee basis, charging for their services instead of receiving commissions or salaries. This approach is considered by some as the optimal choice, potentially mitigating the risk of biased advice. To obtain an estimate of the specific hourly fees charged by agents, direct contact with the CLU is required.

Understanding CLUs

CLUs speak to an intensive comprehension of an expansive exhibit of individual danger, the board, and disaster protection arranging issues. The program likewise focuses on morals, polished methodology, and inside and out information while conveying guidance in the everyday problems of protection, business setting, and home arranging. Having extra information in these territories gives budgetary organizers a severe edge over different organizers with fewer qualifications.

As per The American College of Financial Services, which offers the CLU assignment, money-related experts holding a CLU assignment can average 51% more noteworthy salary than their partners since they have the particular abilities to support customers. The program shows numerous parts of individual and business budgetary arranging:

• Instructions to set and arrive at budgetary objectives by investigating the customer’s money-related life and distinguishing life and medical coverage needs just as close to home property and obligation chances.
• Approaches to accomplish more noteworthy budgetary security through disaster protection and annuity items.
• Instructions to oversee effective organizations with vital authoritative and preventive arranging.
• Procedures to upgrade bequest esteem, ration existing resources, and accommodate monetary security during retirement.

A financial advisor who has earned the Chartered Life Underwriter designation would be knowledgeable about the following:

• Choosing the right level of insurance
• Understanding how insurance operates
• Easy evaluation of insurers
• Creating criteria for selecting an insurance provider.

FAQs

What is the CLU reimagined?

We strive to differentiate ourselves from the competition and show our worth to existing and new clients in today’s cutthroat financial planning market. The Chartered Life Underwriter (CLU) has been the industry’s gold standard for over a century. Due to its dynamic nature and continued applicability to the current financial issues, it has withstood the test of time and will do so in the future.

Two changes and improvements have been made to the reinvented CLU.

• Program requirements will change from an 8-course program to a more condensed 5-course program as of 4/4/2022. It gives students a fresh perspective on the subjects and ideas required to successfully negotiate today’s insurance market.
• Modifying the Personal Pathway curriculum, students have asked that the introductory CLU courses be revised since we established the personal pathway delivery model in June 2020. We are excited to announce that starting in July 2022, students can enroll in the freshly updated Personal Pathway versions of the foundation CLU courses.

Why are you altering the CLU program in this way?

The revamped and updated curriculum fits in exceptionally well with our other specialized certifications in retirement, wealth management, special needs, charity, and financial planning. A greater emphasis on the importance of life insurance has also improved the quality of the CLU Program and certificate, according to a CLC Alumni study.

Top industry thought lenders will instruct CLU students on material immediately valuable for their clients. The redesigned CLU strategically uses life insurance and other instruments as cutting-edge risk management tools at every stage of financial planning.  The CLU curriculum is extensive and detailed and will equip advisors for any difficulty. It covers income protection, tax-favored asset creation, estate conservation, and other sophisticated planning principles in trust.

When will the updated program specification take effect?

On April 4, 2022, the CLC Program’s course requirements will change from 8 courses to 5. All ClU in active status will be immediately enrolled in the five-course program, and the change is retroactive.

When are the updated Personal Pathway courses scheduled to go on sale?

The updated Personal Pathway HS 323 and HS 324 will accept enrollment starting in July, and the classes will begin on August 4th, 2022 (the first Thursday of the month). The updated Personal Pathway HS 331 will accept students starting in August, and the course will begin on September 1st, 2022 (the first Thursday of the month); up to the time when the updated system is open, students can enroll in the existing self-study versions of the courses.

What conditions apply to the new program?

The redesigned CLU Program comprises four core courses and one optional.

The four mandatory core courses are:

• HS 323 Planning for Life Insurance
• Tools and Techniques Legal Aspects of Life Insurance, HS 324
• Fundamentals of Estate Planning, HS 330
• HS 331: Planning for Professionals and Business Owners

The fifth course is optional, and CLC students may select one of the following Huebner School course options as their fifth course:

• Financial Planning Process and Environment, high school
• Fundamentals of Insurance Planning (HS 311)
• Fundamentals of Income Taxation (HS 321)
• HS 326 Retirement Needs Planning
• Investments under HS 328

Students who have earned one of the following designations can use it in place of the elective as an alternative.

• Chartered Special Needs Consultant (ChSNC)
• Retirement Income Certified Professional (RICP)
• Wealth Management Certified Professional

And need to finish the four core courses, for instance, if you already have your RICP.

What course sequence is suggested or required?

We advise students to finish the CLU program in the order shown below. You can, however, finish the courses in the sequence of your choice. The four needed core courses are:

• HS 323: planning for life insurance: Tools and Techniques
• Legal Aspects of life insurance (HS 324)
• Fundamentals of Estate Planning HS 330
• HS 331: Planning for Professionals and Business Owners. Your preferred elective

Personal Pathway; What is it?

Delivering courses called Personal Pathway allows students to learn quickly while providing organized lectures and engaging learning activities. Personal Pathway courses consist of 10 weeks of organized sessions, course requirements contributing to your final grade, and an extra four weeks for the test. To find out more about the personal Pathway ™ model, go here.

Can I choose not to use the new system (Personal Pathway)?

There is no way to opt out. The Personal Pathway versions of the course will be the only ones accessible to students registering once they have debuted. Personal Pathway has shown to be very successful, and it has grown in popularity due to the 2021 upgrades that allow students to do their coursework on their own time.

Will different titles count toward the new CLU?

Yes, you will be given credit for the optional in the redesigned CLU if you currently have the Retirement Income Certified Professional (RICP), Wealth Management Certified Professional (WMCP), or Chartered Special Needs Consultant (ChSNC) certifications. In contrast, after receiving your CLU, you will have two courses that you may use to further your studies in the ChFC or CFP Certification Education program.

Conclusion

When searching for the right place to buy life insurance, individuals serious about their decision should look for a CLU. Financial advisors holding this accreditation specialize in the life insurance industry and are equipped to guide you through your options. As you embark on your search, consider how each chartered life underwriter earns compensation.