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

Read this article to find out what 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 expert assignment for people who wish practical experience in disaster protection and domain arranging. Holders of the Certified Financial Planners (CFP) assignment will frequently add CLU to their qualifications to exhibit extra topic aptitude. People must pass a progression of courses and assessments to get the job.

The CLU is the most regarded protection assignment in the business. This assignment was made in 1927 by the American College in Bryn Mawr, Pennsylvania. The CLU has customarily been sought after by operators who wish to represent considerable authority in extra security for business or domain arranging purposes.

CLU are financial advisors specializing in insurance and have a high degree of life insurance and estate planning knowledge. These experts can assist you in navigating the complexity of life insurance, including how much coverage you want and which annuities you must consider. Additionally, they may work with small firms to organize their tax and regulatory requirements, develop succession plans, and more.

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Image Source: Canva

Some CLUs offer you insurance plans while working for insurance companies. As a result, they are knowledgeable about the available policies and those that would best fit their needs. They can typically respond to any inquiries regarding purchasing life insurance, such as coverage requirements, whether you require term or whole life insurance, and which insurer to choose.

The cost of life insurance is greatly influenced by your medical history and that of your family. However, CLUs typically endeavor to provide clients with the most competitive pricing. You may rely on a CLU to search the market for your best matches if you have a high-risk or problematic past.

Participants who want to become CLUs must finish courses and tests in estate planning and life insurance. Participating advisers must also adhere to stringent ethical guidelines and have worked full-time in the business for at least three of the previous five years. Once finished, advisers are qualified to advise customers on wills, trusts, and estate planning as they are professionals in insurance.

The only college that trains financial advisers to become licensed life underwriters is The American College. In reality, the certification has been in use 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.

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Image Source: Canva

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

Likewise, expenses and charge structures change for CLUs with every monetary counsel. Moreover, only one out of every odd firm utilizes a CLU, regardless of whether it professes involvement in risk management and protection arranging. If your CLU is a protection operator, the person probably gets installment as a level of the extra security premium you buy. This commission is now incorporated with the bonus and is directed by the state. So you don’t need to stress over additional charges. Operators may likewise be salaried representatives of disaster protection organizations. They get most of their compensation from their pay as opposed to commissions.

Some CLUs work at an expense just limit. That implies It charges a fee for Its administration instead of gaining a commission or compensation. A few people accept this is the ideal decision, as it can eliminate the chance of one-sided guidance. For a statement of the specific hourly expenses operators charges, you should contact the CLU straightforwardly.

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Image Source: Canva

As with other financial advisers, CLUs have different costs and fee schedules. Even though the company claims to know about risk management and insurance planning, not all have CLUs on staff. Your CLU may be compensated as a percentage of the life insurance premiums you buy if you are an insurance agent. The state governs this commission, and it is already included in the premium. Thus, you won’t need to be already included in the premium. Thus, you won’t need to worry about additional costs. Agents may also work for life insurance businesses as salaried employees. In such instances, salaries rather than commissions make up most of their compensation.

Some CLUs only accept payments when they work. It implies that they charge a price for their services instead of receiving a commission or a salary. As it might eliminate the chance of biased counsel, some individuals think this is the wisest decision. You must contact the CLU directly if you want an estimate of the specific hourly rates that agents charge.

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

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Image Source: Canva

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

Any individual who’s genuinely prepared to purchase disaster protection yet isn’t sure where to watch ought to consider searching for a CLU. Monetary counsels with this accreditation are specialists in the disaster protection industry and are set up to control you through all the choices. When you start your hunt, consider how each chartered life underwriter gets remuneration.

John Otero

John Otero

John Otero is an industry practitioner with more than 15 years of experience in the insurance industry. He has held various senior management roles both in the insurance companies and insurance brokers during this span of time. He began his insurance career in 2004 as an office assistant at an agency in her hometown of Duluth, MN. He got licensed as a producer while working at that agency and progressed to serve as an office manager. Working in the agency is how he fell in love with the industry. He saw firsthand the good that insurance consumers experienced by having the proper protection. John has diverse experience in corporate & consumer insurance services, across a range of vocations. His specialties include Major Corporate risk management and insurance programs, and Financial Lines He has been instrumental in making his firm as one of the leading organizations in the country in generating sustainable rapid growth of the company while maintaining service excellence to clients.

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