Lucky for Life Cash vs Annuity

One of the main features of Lucky for Life is the annuity aspect of the top prize, with the chance to earn $1,000 a day for the rest of your lifetime if you match all the numbers. The second prize is also worth $25,000 a year for life.

However, there is also a cash option for those players who would prefer to take a lump sum over regular payments. The table below outlines what you must decide between if you win a major prize.

Match	Annuity Option	Cash Option
5 Numbers + Lucky Ball	$365,000 a year for life	$5.75 million
5 Numbers	$25,000 a year for life	$390,000

The top prize is split between players if there are between two and 14 winners, ensuring a minimum prize value of $500 a week. In the very unlikely scenario that 15 or more players match all the numbers, there is no annuity option and a value of $7.125 million – which represents the top prize liability – will be divided equally between everyone.

For the second prize, the amounts are fixed per winner whether you choose the cash or annuity. Again, though, there is a limit to how much can be paid out, and if there are more than 20 winners and an amount totalling $9.4 million – the second prize liability – will be divided equally and given out as a single lump sum payment.

Minimum of 20 Years

When deciding whether to take the cash or annuity, there are a few factors to consider. One might be your age when you win. Payments carry on for the rest of your lifetime, so if you are a young winner you could potentially keep winning $365,000 a year for many decades, which would add up to far more than the cash option. For example, 50 years at this rate would give reward you with $18.2 million.

Annuity payments are guaranteed to continue for at least 20 years, so even if a winner dies before this time the rest of the money will go to their estate.

Another key advantage of the annuity option, of course, is that it provides financial security forever. You could theoretically spend all your cash in one go with a lump-sum payout, but if you take the annuity you know that another $365,000 boost to your bank balance is just around the corner.

For players who would rather have the cash, the big plus is that you do not have to wait to make any particularly large purchases. You might even consult a financial advisor and decide that taking a lump sum and investing it would bring you bigger rewards than the annuity.

Speaking to a financial expert, and the advisors from your state lottery, is always a good idea as they may be able to help you reach a decision that is right for you given your own personal circumstances.