DEFINITION of 'Valuation Period'
The time between the end of the business day of the first business day and the end of the business day of the second business day. The valuation period refers to variable annuities. Annuities are financial products that provide an income source in retirement. Variable annuities are annuity products that provide annuity payouts based on the current value of the annuity's investments.
BREAKING DOWN 'Valuation Period'
The contract value of a variable annuity depends on the performance of the investments. The owner of the annuity can choose the investment vehicles and allocate certain percentages or amounts towards various investment products. A variable annuity offers the potential for greater earnings (and larger payouts) but at the same time involves more risk than other annuity products such as fixed deferred annuities.