Cash 4 Life Cash vs Annuity

Out of nine prize levels, the bottom seven are fixed, one-off payments. However, if you match all five main numbers, you get to decide between two exciting options. The following table shows what you can take, whether you match the Cash Ball alongside the main numbers or not.

The annuity payments are paid out yearly rather than daily or weekly. For the top prize, this is always $365,000 as Leap Years do not count. The jackpot is also split if there are multiple winners, with $7 million split between winners and paid out as a lump sum.

The second prize is fixed at $1,000 a week for life or $1 million, but if the prize liability - set at $5 million – is reached – then this is divided equally between winners and paid as a lump sum, so the final amount may end up being less than $1 million.

20 Years guaranteed

If you take the annuity option, it would work out as a greater amount over the course of your lifetime. There’s also a protective measure in place of 20 years – this is the guaranteed length of time that payments will continue from the date of claiming (if a winner dies sooner, the rest of the money goes to their family).

Taking the annuity ensures that you will always have a steady income stream. There would never be a need to worry about running out of money because another payment of £365,000 would come every year.

Surprisingly, however, even though the game is aimed at players who might be more interested in a lifetime prize, lots of the biggest winners still prefer to take the cash option. This is probably because you immediately get a massive boost to your bank balance and would not have to wait to build up enough cash for a large purchase such as buying a new home.

Investing a lump sum of $7 million - minus taxes - could also yield a great return and make you more money over the coming decades than the annuity option, although this would be a matter to discuss with a financial advisor.