Chartered Life Underwriter (CLU) Practice Test
Build your confidence for Chartered Life Underwriter (CLU). Practice the concepts, understand the answers, and strengthen your knowledge one question at a time.
Try a sample questionExam overview and details
The Chartered Life Underwriter (CLU) designation, administered by The American College of Financial Services, represents the pinnacle of knowledge and ethical practice in life insurance and advanced financial planning. This prestigious certification signifies a professional's mastery of complex insurance concepts, sophisticated estate planning strategies, and the application of life insurance in business continuity and wealth transfer. The curriculum delves deeply into the technical, legal, and tax implications of life insurance products, equipping advisors to design comprehensive solutions for high-net-worth individuals, business owners, and families facing intricate financial challenges. Earning the CLU demonstrates an unwavering commitment to client-centric expertise, positions the holder as a trusted authority in the field, and is widely regarded as the gold standard for insurance professionals seeking to elevate their practice and credibility.
Sample Questions
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In 2025, a widowed client dies owning $10.8 million of investments, a $2 million residence, and a $2.5 million life policy payable to her estate. She made no taxable lifetime gifts. Her executor asks whether a federal estate tax return is required. What is the best answer?
A married client transfers an existing $3 million policy to an ILIT in March 2025 and dies unexpectedly in December 2027. The trust was valid, the client retained no incidents of ownership after transfer, and premiums were paid with Crummey notices. What is the federal estate tax issue?
A client with a $16 million estate in 2025 wants to leave $3 million to charity and the balance to children. The executor asks how the charitable bequest affects federal estate tax. Which answer is most accurate?
A C corporation buys life insurance on a 39-year-old chief scientist whose departure or death would delay a drug trial by two years. The corporation is owner and beneficiary, will pay premiums, and plans to use proceeds to recruit a replacement and reassure lenders. Which compliance issue is most directly implicated?
A participating whole life policyholder receives a $4,800 dividend. Her basis in the policy is $52,000, and she has never received dividends before. She asks whether the dividend is taxable if taken in cash. What is the best answer?
Exam insights and study advice
The CLU designation is a critical differentiator for career advancement and industry recognition. It signals to clients, colleagues, and employers a profound, specialized expertise that goes beyond foundational licensing. Holders are perceived as elite advisors capable of navigating the most complex planning scenarios, which directly translates to increased client trust, referral opportunities, and the ability to command premium fees. For those targeting advanced markets in business insurance, executive benefits, or estate planning, the CLU is often a prerequisite for credibility and success. It is a tangible commitment to lifelong learning and ethical standards, fostering professional respect and opening doors to leadership roles within the financial services industry.
What this exam covers
01HS 311 Fundamentals of Insurance Planning
Topics
- Required course/exam
Learning objectives
- Required course/exam
02HS 323 The Tools and Techniques of Life Insurance Planning
Topics
- Required course/exam
Learning objectives
- Required course/exam
03HS 330 Fundamentals of Estate Planning
Topics
- Required course/exam
Learning objectives
- Required course/exam
04HS 331 Planning for Business Owners and Professionals
Topics
- Required course/exam
Learning objectives
- Required course/exam