Getting your winnings in Annuity or lump sum

Annuity versus lump sum
Ramesh Apte

Editor-In-Chief, Ramesh

Last updated on 12th July 2020

Published: 01/10/2019

Categories: Informational

What is the difference between Annuity or lump sum

When playing lotteries I usually don’t think about if I win the jackpot I am more focused on when. Of course with this mindset, I have to be ready for what to do with the money and one of the biggest questions is to get my lottery jackpot paid out in annuity or as a lump sum.

There are other things to think of as well like what trips, what cars and what houses I would buy but making a choice on how to get your jackpot paid out is the first step.

Playing at the best Indian online lotteries, you have a choice but with some, you can only get the payout as either as an annuity or lump sum with the latter being most common.


Annuity means that you get your jackpot paid out over time. The payout can be made monthly or yearly. The amount of time is set by the lottery in question.


There are several benefits to choosing an annuity. The most obvious when is the amount of money you get paid out in the end. When you win a jackpot where you can choose an annuity or lump sum, the jackpot is based on you choosing an annuity.

For example, Manuel Franco won the Powerball lottery on the 27th of March, 2019. He won the second-biggest jackpot in the history of the lottery, $768 million. This online lottery game allows its jackpot winners to choose how they want to get their payout and Mr. Franco chose a lump sum.

Since the original jackpot amount was based on being paid out in annuity Mr. Franco ended up getting $477 million instead of his original $768 million. Quite a difference!

Another benefit of an annuity is the fact that you will have a steady income for a long time. No worrying about spending it all and there being nothing left. Even if you spend your yearly payout there will come another one!

Lump Sum

Lump sum or cash payout is when you get your whole jackpot paid at once. All your crores appearing magically in your bank account in one go. I haven’t had the chance to experience it yet but I can imagine it must be one of the most surreal experiences a person can have.

Benefits of Lump Sum

The main benefit of getting your jackpot paid out as a lump sum is the simple fact that you have all your money at once. You are completely free to do whatever you want.

You have all the chances in the world to not just spend your money but to invest and increase the money you now have. As the expression goes “it takes money to make money”.

After you have received your jackpot you should enjoy it to the max. Buy all the things you want and live life! When you have done that for a while I am pretty sure you are going to want more. This is when you should start investing. My recommendation would be to find someone you trust and let them help you grow your money.

This way you won’t only change your life but you have the possibility of creating a legacy!

At the end whatever you choose just make sure that it is the right choice for you. There is no right or wrong choice since it all depends on your life situation and interests.