Overview of Chartered Life Underwriter (CLU) Designation

CLU Certification (Chartered Life Underwriter) is an advanced program in life insurance that helps candidates understand estate planning and wealth transfer. It is very often taken as an addon certification by accountants, wealth managers and financial planners. According to The American College which offers this certification, course work has five required and three electives. The five required courses are:

1. Fundamentals of Insurance Planning:  Risk management and insurance, insurance industry operations, legal principles pertaining to this industry, and regulation of insurers; Social insurance, life insurance and annuities, medical and disability income insurance, long-term care insurance and personal property and liability insurance; Overview of commercial property and liability insurance and a case study.
2. Individual Life Insurance: Life insurance policies and annuities available for the personal needs of individuals and their use in financial planning. Individual insurance products and insurance reserves regulation; Insurance company organization, operations and investments.
3. Life Insurance Law: Legal rights and obligations of the policy owner and the insurance company; Dispute resolution between insured’s and insurers and general principles of the judicial process; Legal aspects of life insurance, basic principles of contract law; policy provisions and the incontestable clause; assignments, ownership rights and creditor rights; beneficiary designations and disposition of proceeds; the law of agency; and advertising and privacy issues.

1. Fundamentals of Estate Planning: Estate and gift tax planning, including the nature, valuation, transfer, administration and taxation of property, estate and gift tax system, including strategies of estate planning; Gratuitous transfers of property outright or with trusts, wills and powers of appointment; use of the marital deduction; valuation of assets; and buy-sell agreements; client interview, fact finding, ethical standards and development of personal estate plans.
2. Planning for Business Owners and Professionals: Tax and legal aspects of organizing a business; compensation planning for the business owner; business succession planning; buy-sell agreements; estate planning and estate freezing techniques; methods for transferring a family business; lifetime disposition of a business interest

The electives a candidate can choose from include:

1. Financial Planning: Process and Environment
2. Individual Health Insurance
3. Income Taxation
4. Group Benefits
5. Planning for retirement needs
6. Investments
7. Estate Planning Applications