The CLU credential is one of the most prestigious designations in financial services. It is a designation that requires substantial work experience, education, and ethics. Moreover, applicants must pass eight two-hour, 100-question exams.
Chartered Life Underwriters help clients understand their life insurance needs and choose the right policies. They also help small businesses organize their tax affairs and legal requirements.
Facts verified Oct 16, 2026 against The American College of Financial Services. Dates that have passed are removed automatically.
Facts verified Oct 16, 2026 against The American College of Financial Services. Dates that have passed are removed automatically.
| Item | Detail | Official source |
|---|---|---|
| Passing score | 70% final course grade | The American College of Financial Services |
| Exam fee (annual recertification (client-facing)) | $240 per year | The American College of Financial Services |
| Exam fee (full four-course program) | $3,395 for all four courses | The American College of Financial Services |
| Exam fee (single course) | $985 per course | The American College of Financial Services |
| Renewal | Annual Professional Recertification Program (PRP) | The American College of Financial Services |
| Renewal (CE requirement) | 30 CE hours every 2 years incl. 1 ethics hour (client-facing) | The American College of Financial Services |
| Delivery | All online, self-paced | The American College of Financial Services |
| Eligibility | No prerequisites; high school diploma or equivalent | The American College of Financial Services |
Facts verified Oct 16, 2026 against The American College of Financial Services. Dates that have passed are removed automatically.
The Chartered Life Underwriter (CLU) is one of the oldest financial certifications. It is a program established and conducted by the American College of Financial Services. The CLU exam is designed to provide financial services professionals and insurance agents with the knowledge to help their clients plan for unforeseen circumstances in life and death.
To become a CLU, candidates must complete eight training courses and pass their exams. Each exam consists of two hours and 100 questions and is closed-book. In addition, candidates must have three years of experience to qualify for the CLU designation. Part-time experience counts as hourly credit, and 2,000 credits equals a year of experience.
Chartered life underwriters are a key component in helping individuals preserve their wealth by ensuring that they have the right protection for their family and business. They can also help their clients establish strategies that maximize growth, minimize taxes and transfer assets to the next generation. Typically, CLUs work as part of a planning team for high-net-worth clients. They can also help their clients manage their estates and provide them with security in the event of a disability or death.
Chartered Life Underwriters, or CLUs, are financial services professionals who specialize in life insurance and estate planning. They have rigorous training that covers topics like insurance, annuities and risk management. These professionals can be found in many different industries, including banks, loan brokerages and securities firms. They may also work in government enterprises or as independent financial advisors. SmartAsset’s free advisor matching tool can help you find a local CLU in your area. Practice with the free CLU - Chartered Life Underwriter practice test on PracticeTestGeeks (7 questions with answer explanations).
CLUs are often financial professionals who want to launch their careers in the field, but they can also be those who already hold a professional designation such as a Certified Financial Planner (CFP) or Chartered Financial Consultant (ChFC). The CLU is the industry’s oldest credential and requires extensive education, exam preparation, and continuing education.
A CLU works as a fiduciary, meaning they will only sell policies that are in their clients’ best interests. They may also help them with other aspects of their financial security, such as retirement planning. They can find jobs with life insurance companies or work as independent financial advisors.
If you are preparing for the CLU exam, you may also benefit from reviewing material for other professional designations, such as the CU practice test, which covers foundational underwriting principles that overlap with several CLU topics.
Candidates with a background in financial planning and accounting can sharpen their analytical skills by working through the CAIA practice test, which tests knowledge of alternative investments and portfolio management relevant to advanced insurance planning.
Interactive CLU - Chartered Life Underwriter resources on PracticeTestGeeks, free to start:
Prepare for the CLU - Chartered Life Underwriter exam with our free practice test modules. Each quiz covers key topics to help you pass on your first try.
| Pros | Cons |
|---|---|
| how to play clue — cLU credential is recognized by employers and industry professionals | Preparation requires significant time and study commitment |
| Higher earning potential compared to non-credentialed peers | Associated costs for exams, materials, and renewal fees |
| Expanded career opportunities and professional advancement | Continuing education needed to maintain credentials |
| Structured learning path builds comprehensive knowledge | Competition for advanced positions can be challenging |
| Professional development that stays current with industry standards | Requirements and standards may vary by state or region |
Try these questions from our free CLU - Chartered Life Underwriter practice tests. The correct answer and an explanation follow each question.
When calculating the human life value approach to life insurance needs, which factor is NOT typically included?
Answer: C. Investment portfolio balance of the surviving spouse
The human life value approach focuses on the present value of future earnings minus personal consumption, not the surviving spouse's existing assets.
In a split-dollar life insurance arrangement under the collateral assignment method, who is typically the owner of the life insurance policy?
Answer: B. The employee
Under the collateral assignment method of a split-dollar plan, the employee is the owner of the life insurance policy. The employee assigns an interest in the policy's cash value and/or death benefit to the employer as collateral to secure the employer's premium payments, which are treated as loans. This contrasts with the endorsement method, where the employer owns the policy.
Which type of life insurance policy combines a decreasing term rider with a whole life base to keep the total death benefit level while the premium remains constant?
Answer: C. Economatic policy
The economatic policy uses dividends to purchase one-year term insurance, keeping the total death benefit constant as the whole life base grows, all at a level premium.
An employee has been covered under her employer's group life insurance plan for seven years. Her employment is terminated, and she wants to continue her life insurance coverage. Which of the following accurately describes her rights under the typical conversion privilege?
Answer: C. She can convert to an individual permanent policy for an amount up to the group coverage amount without proving insurability.
The group life conversion privilege allows a departing employee to convert their group coverage to an individual permanent life insurance policy (e.g., whole life) without providing evidence of insurability. The conversion must typically be done within 31 days of termination, and the amount of coverage cannot exceed the amount the employee had under the group plan.
Take the full CLU - Chartered Life Underwriter practice test