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- Cash vs Annuity
Millionaire for Life: Cash vs Annuity
What really sets Millionaire for Life apart from other lotteries is the lifetime annuity top prizes. The idea of being paid 'til the end of your days is very appealing! But the top two prizes can be accepted as lifetime annuities or as one-time cash payments - it's a lot of money either way, sure, but this is an enormous decision. What would you do if you won?
Check the table below: It shows the before-taxes value of the top two Millionaire for Life prizes. In many states, players who want to accept the Cash Option must make their claims within 60 days of the draw (after this, only the Annuity is available) so the clock is ticking!
| Match | Annuity Option | Cash Option |
|---|---|---|
| 5 Numbers + Bonus Ball | $1 million a year for life | $18 million |
| 5 Numbers | $100,000 a year for life | $2.2 Million |
A Minimum of 20 Years
Conventional lotteries such as Powerball and Mega Millions also offer prizes as an annuity, but how much you get is limited by the jackpot you won. Sure, your annuity will keep coming in for 30 years, but there's no more after that!
Millionaire for Life is different, since the annuity prizes last for the rest of the winner's life, or 20 years: whichever is longer. If a winner passes away before the 20-year limit, any remaining payments will be made to the winner's estate.
Which option gets me more money?
The cash value of the grand Millionaire for Life prize is $18 million. With an annuity of $1 million, you'd only have to live another 19 years to earn more than the cash value of your prize. Living 50 years would more than double your winnings! Be sure to take your age into account when claiming your prize.
Remember too that lottery tickets are bearer instruments, so whoever is in possession of them is entitled to the winnings, regardless of who bought the ticket. If you're pretty old, to put it bluntly, consider letting a younger, trusted friend or family member to claim the prize on your behalf; they may be able to get more value from it in the long run. We wouldn't necessarily recommend this, but it's a possibility worth considering.
Lifetime Financial Security
One tempting aspect of the lifetime annuity is that you're insured for life. Sadly, it's relatively common for big lottery winners to blow through their winnings in no time and having to go back to the 9 to 5. If you don't trust yourself to spend an $18,000,000 cash prize wisely, a steady stream of payments might suit you better.
On the opposite end of the spectrum, some big winners take the cash prize because they plan to invest it. A savvy investor might be able to take home more each year than the annuity is worth, although this comes with its own risks, and isn't as secure.
Big Buys from Day 1
Many players accept the cash prize so that they can buy something big right away, like a house. For the $1 million per year top prize, this might not be a concern, but the second prize of $100,000 per year is a lot more limiting. Would you rather have the $2.2 million upfront?
Get Advice From The Experts
At the end of the day, most of us aren’t cut out to make this decision all by ourselves. We would always recommend consulting a financial expert, as well as advisors from your state lottery. They'll help you to make the right decision based on your individual circumstances.
Multiple Winners and Prize Liabilities
The Top Prize
In the case of 2 to 20 players hitting the same jackpot, the prize will be divided among the winning tickets on a pari-mutuel basis, with each ticket receiving an equal share. Both the cash option and annuity (which would be $50,000 each year) are still available.
If 21 or more tickets match all six numbers to win the jackpot, then no annuity prize is available. The jackpot's cash value will be divided evenly amongst the winning tickets.
By the way, this is a good reason why you shouldn't pick common lottery numbers and patterns like 1-2-3-4-5 or 3-6-9-12-15, even though "they have the same chance of winning" - if they do, you'll have to share the prize with all the other suckers who picked them too!
The Second Prize
If there are 1-20 winners of the second-place prize in a single draw, then all winning ticket-holders entitled to a $100,000 annuity (or cash equivalent) in full, without having to share.
In the event that 21 or more tickets win the second-level prize, then the state lotteries involved will determine a liability cap, and split this amount evenly between all winning tickets. In this instance, no annuity is available.
*Millionaire for Life is not yet available to play. It will launch in March 2026.