Weighting Multiple Index Crediting Technique is an indexed crediting method. Two or more indices offered on the crediting method receive a stated percentage weighting over the crediting term. Depending on each index’s weightings and performance, potential indexed gains will be credited at the end of the period. An insurance business, for example, can offer indices A, B, and C as part of a monthly average multiple index crediting system. Over three years, Index A will be given a 40% weighted; Index B will be given a 35% weighting, and Index C will be given a 25% weighting. At the end of the term, the carrier applies a Participation Rate, Cap, or Spread to any potential indexed profits.
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