CLU vs ChFC
Which should you take first?
Neither designation is required for the other. If you plan to earn both, the order matters for the CLU: candidates who already hold the CFP or ChFC complete only 2 CLU courses (HS 323 and HS 331) instead of 4.
Side by side
| Fact | CLU | ChFC |
|---|---|---|
| Questions | Not published by The American College. Each required course has its own proctored final exam. | Not published by The American College. Each required course has its own proctored final exam. |
| Duration | Not published by The American College; each course exam is proctored separately. | Not published by The American College; each course exam is proctored separately. |
| Passing score | 70% or higher final course grade in each required course. | Not published by The American College. |
| Prerequisites and sponsorship | High school diploma or equivalent; three years of relevant experience in financial planning or a related profession to use the designation once earned; agreement to The American College Code of Ethics and Procedures. | High school diploma or equivalent to enroll (no bachelor's degree required). To be awarded and use the ChFC designation, candidates must complete all 8 required courses/exams, have three years of full-time business experience in a related field within the five years preceding the award, and agree to the College's Code of Ethics. |
| Who it's for | Financial and insurance professionals whose clients need holistic life insurance, estate, and business-owner risk planning. E.g., life insurance agents, financial advisors, and estate/business planning professionals building deeper technical expertise beyond a base license. | Financial services professionals (advisors, planners, insurance and retirement specialists) seeking a comprehensive, applied financial-planning credential covering insurance, tax, retirement, investment, and estate planning. |
Source: CLU, The American College exam details
Source: ChFC, The American College exam details
How they differ
Both designations are conferred by The American College of Financial Services and are completed through required courses, each with its own proctored final exam. The CLU requires 4 courses (2 for candidates who already hold the CFP or ChFC), and the ChFC requires 8.
- Course count
The CLU requires 4 courses and the ChFC requires 8.
- Focus
The CLU centers on life insurance, estate and business-owner risk planning; the ChFC is a comprehensive financial-planning credential covering insurance, tax, retirement, investment and estate planning.
- Exams
For both, each course has its own proctored final exam and there is no single cumulative exam.
The CLU program page does not say whether its 3-year experience requirement falls within a 5-year window; The American College Student Handbook describes one for its designations. Confirm with The American College.
Sources
The American College
Sources checked
CLU
Chartered Life Underwriter (CLU)
ChFC
Chartered Financial Consultant (ChFC)
What each exam covers
CLU
- HS 311 Fundamentals of Insurance Planning
- HS 323 The Tools and Techniques of Life Insurance Planning
- HS 330 Fundamentals of Estate Planning
- HS 331 Planning for Business Owners and Professionals
ChFC
- HS 300 Financial Planning: Process and Environment
- HS 311 Fundamentals of Insurance Planning
- HS 321 Fundamentals of Income Taxation
- HS 326 Planning for Retirement Needs
- HS 328 Investments
- HS 330 Fundamentals of Estate Planning
- HS 333 Personal Financial Planning: Comprehensive Case Analysis
- HS 347 Contemporary Applications in Financial Planning
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