Valuation Period

What Does Valuation Period Mean?

A valuation period is the time period during which unit values are determined for variable investment options at the close of each business day. In terms of insurance, valuation periods have significance for investment-based products, such as certain life insurance policies and annuities.

Insuranceopedia Explains Valuation Period

Some life insurance policies include investment vehicles, and with variable annuities, in particular, the insurer invests on behalf of the policyholder using sums available from premium payments. The value and payout of these policies depend on the performance of the investment options; however, growth is not guaranteed.