What Does Valuation Reserve Mean?

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What does Valuation Reserve mean? Read on to discover the definition & meaning of the term Valuation Reserve - to help you better understand the language used in insurance policies.

Valuation Reserve

Valuation Reserve

A valuation reserve is an amount of money that life insurance companies set aside as a hedge against the possibility that their investments go down in value. Required by law, they serve the purpose of supplementing loss reserves and making sure insurance companies are still able to settle claims in the event of a failed investment with money earned from premiums.

We hope the you have a better understanding of the meaning of Valuation Reserve.

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