Free CLU Practice Exam

Risk management foundations

Covers how to identify and categorize personal and business risk exposures and the basic logic of transferring or retaining that risk.

Life, health, disability, and long-term care insurance

Compares term versus permanent life insurance and reviews how health, disability income, and long-term care coverage each address different income and expense risks.

Annuities and social insurance

Introduces annuity structures for accumulation and income needs alongside Social Security's role as a baseline layer of protection.

Property, liability, and credit protection

Looks at homeowners and liability coverage plus practical credit-report and identity-theft safeguards as part of a full risk picture.

Policy design and mechanics

Digs into how individual life insurance policies are built, priced, and how cash value accumulates over time.

Insurer operations and reserves

Explains how carriers manage reserves, invest premium dollars, and stay regulated and solvent.

Annuity products

Examines the range of annuity contracts available and how each fits different accumulation or payout goals.

Matching products to planning needs

Applies life insurance and annuity mechanics to real client planning scenarios rather than treating them as abstract products.

Property ownership and transfer

Covers how different forms of property ownership pass at death and the probate process governing that transfer.

Wills and trusts

Contrasts revocable and irrevocable trust structures with straightforward wills and when each tool is appropriate.

Estate and gift tax system

Walks through federal transfer-tax rules, exemptions, the marital deduction, and generation-skipping transfers.

Charitable and business-transfer strategies

Reviews charitable giving vehicles and buy-sell style techniques used to move a closely held business at death.

Business entity and compensation planning

Covers how a business's legal structure shapes tax treatment and how owner/executive compensation can be designed around it.

Buy-sell agreements

Explains how owners fund and structure agreements that control what happens to a business interest when an owner exits or dies.

Succession and estate-freeze techniques

Looks at strategies for handing a business to the next generation while limiting further estate-tax growth on the founder's side.

Risk management for closely held businesses

Addresses disability, key-person, and other risk exposures unique to a business that doesn't have a large corporate safety net.