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Investments glossary

Valuation Premium

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Quotes of the day:

Chains are chains even if made of gold, they just tie you.

— Patrick Mahony

Valuation premium is a rate set by a life insurance company based on the value of the company’s policy reserves. A company’s policy reserve represents the present value of the future cash flows of an insurance policy, and the total liability of the insurer is the sum of the actuarial reserves for every individual policy.


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