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Term

Daily Averaging

An index annuity interest crediting method that is calculated by comparing the underlying index value on the first day of the contract year to the daily average (usually 252 trading days) of that same index at the end of the year. The daily average index value equals the sum of the daily index values recorded each trading day over the course of the preceding contract year, divided by the number of trading days. At the end of each annual index term, the percentage change between the index starting value and the index daily average value is used in determining the amount of interest that is credited to the annuity, if any.