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.

RELATED TERMS
  1. Immediate Variable Annuity

    An immediate variable annuity is an insurance product where an ...
  2. Qualifying Annuity

    A Qualifying Annuity is similar to any other annuity except it ...
  3. Years Certain Annuity

    A years certain annuity is a retirement income product that pays ...
  4. No-Load Annuity

    A No-Load Annuity is a type of variable annuity that comes with ...
  5. Annuity Certain

    Annuity certain refers to an annuity contract that provides a ...
  6. Wraparound Annuity

    A Wraparound Annuity allows the investor control of the underlying ...
Related Articles
  1. Retirement

    Are Annuities Retirement-Only Investments?

    Learn more about why annuities are generally purchased and the way that they can positively and negatively affect an individual preparing for retirement.
  2. Investing

    Should You Buy an Annuity?

    There are both pros and cons of buying an annuity, so do your due diligence before investing in one.
  3. Investing

    The Many Benefits of Deferred Annuities

    Having a deferred annuity can ensure income in retirement above and beyond Social Security.
  4. Financial Advisor

    Are Annuities Right for You?

    Annuities are safe and often appealing, but IRAs and 401(k)s offer advantages that annuities typically can’t match, with little additional risk.
  5. Investing

    An Overview of Annuities

    Annuities provide a guaranteed income stream. Learn how they work and their benefits.
  6. Financial Advisor

    Annuities: The Good, Bad and the Ugly

    Annuities suffer from a few perception problems. This primer that covers the good, the bad and the ugly of annuities.
  7. Investing

    Things Your Annuity Salesperson May Not Tell You

    Your variable annuity salesperson should tell you many things. But there's a chance they'll leave out some crucial details.
  8. Retirement

    Buying Annuities in a Low Interest Rate World

    Learn if buying an annuity makes sense in a low interest rate environment. Also discover the different types of annuities and how interest rates affect them.
  9. Investing

    The Disadvantages of Annuity Contracts

    The disadvantages of annuities aren't always fully understood.
Hot Definitions
  1. Gross Profit

    Gross profit is the profit a company makes after deducting the costs of making and selling its products, or the costs of ...
  2. Diversification

    Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting ...
  3. Intrinsic Value

    Intrinsic value is the perceived or calculated value of a company, including tangible and intangible factors, and may differ ...
  4. Current Assets

    Current assets is a balance sheet item that represents the value of all assets that can reasonably expected to be converted ...
  5. Volatility

    Volatility measures how much the price of a security, derivative, or index fluctuates.
  6. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
Trading Center