Win For Life
Encyclopedia
Lottery games with a "lifetime" prize, known by several names, including Win For Life, comprise two types of US lottery
games in which the top prize often is automatically paid out in an annuity
; unlike most annuities with a fixed period, lifetime annuities often pay until the winner's death, regardless of how long they live. (Most "lifetime" payout games, especially drawing games, do not offer a cash option.)
with a lifetime prize.
These games vary; some lotteries offer multiple price points for "lifetime" games, with the top prize ranging from $50 daily to $1,000,000 yearly. Play for each game varies.
, Kentucky
, and Virginia. Players choose 6 numbers 1-42; seven numbers are drawn, including the Free Ball. Top prize is $1000-per-week; there is no cash option. (Initially, Virginia Lottery winners could choose $520,000 cash in lieu of lifetime payments; that option was withdrawn suddenly in 2007.) Second prize is $52,000.
On January 29, 2011, Kentucky participated in WfL for the final time; it, along with Georgia and Virginia, launched Decades of Dollars
on January 30, 2011. (Arkansas joined Decades of Dollars on May 3.) Unlike WfL, top-prize winners in Decades of Dollars can choose cash ($4,000,000) instead of the annuity (30 yearly payments of $250,000 each).
, unlike annuitized payouts (drawing and scratch game) which have a fixed payout, e.g. 20 annual payments. Some "lifetime" games guarantee that the winner, or their estate, receive a minimum amount of money, or number of payments. In some instances, the player dies shortly after winning, with the lottery paying little.
Players of these games like the possibility of receiving a "lifetime" of lottery payments, perhaps with the goal of an early retirement. On the other hand, many winners who have the choice of lump sum or annuity payments choose the cash option (for different reasons), which "lifetime" payout games, especially in draw game form, often lack.
Lottery
A lottery is a form of gambling which involves the drawing of lots for a prize.Lottery is outlawed by some governments, while others endorse it to the extent of organizing a national or state lottery. It is common to find some degree of regulation of lottery by governments...
games in which the top prize often is automatically paid out in an annuity
Annuity (US financial products)
In the United States an annuity contract is created when an insured party, usually an individual, pays a life insurance company a single premium that will later be distributed back to the insured party over time...
; unlike most annuities with a fixed period, lifetime annuities often pay until the winner's death, regardless of how long they live. (Most "lifetime" payout games, especially drawing games, do not offer a cash option.)
Scratch games
Most US lotteries offer at least one scratch gameScratchcard
A scratchcard is a small card, often made of thin paper-based card for competitions and plastic to conceal PINs, where one or more areas contain concealed information which can...
with a lifetime prize.
These games vary; some lotteries offer multiple price points for "lifetime" games, with the top prize ranging from $50 daily to $1,000,000 yearly. Play for each game varies.
Drawing game
The Win for Life drawing game began in February 2006 in GeorgiaGeorgia Lottery
The Georgia Lottery is overseen by the government of Georgia, United States. Headquartered in Atlanta and run by the Georgia Lottery Corporation, the lottery takes in over US$1 billion yearly. By law, half of the money goes to prizes, one-third to education, and the remainder to operating and...
, Kentucky
Kentucky Lottery
The Kentucky Lottery, consisting of various games of chance, is a government-regulated form of gambling. The Lottery began in April 1989 after a November 1988 vote in which over 60% of voters cast ballots in favor of it. On April 4, 1989, ticket sales began with first day sales of over $5 million...
, and Virginia. Players choose 6 numbers 1-42; seven numbers are drawn, including the Free Ball. Top prize is $1000-per-week; there is no cash option. (Initially, Virginia Lottery winners could choose $520,000 cash in lieu of lifetime payments; that option was withdrawn suddenly in 2007.) Second prize is $52,000.
On January 29, 2011, Kentucky participated in WfL for the final time; it, along with Georgia and Virginia, launched Decades of Dollars
Decades of Dollars
Decades of Dollars is the name of a lottery game that became available on January 30, 2011 in Georgia, Kentucky, and Virginia. The game is drawn Monday and Thursday nights, including holidays...
on January 30, 2011. (Arkansas joined Decades of Dollars on May 3.) Unlike WfL, top-prize winners in Decades of Dollars can choose cash ($4,000,000) instead of the annuity (30 yearly payments of $250,000 each).
Pros and cons of "lifetime" prizes
Because "lifetime" games' payouts vary depending on the longevity of each winner (an elderly or terminally ill winner is likely to receive much less than a healthy young adult) these payouts, especially in draw game format, often do not offer a cash optionPresent value
Present value, also known as present discounted value, is the value on a given date of a future payment or series of future payments, discounted to reflect the time value of money and other factors such as investment risk...
, unlike annuitized payouts (drawing and scratch game) which have a fixed payout, e.g. 20 annual payments. Some "lifetime" games guarantee that the winner, or their estate, receive a minimum amount of money, or number of payments. In some instances, the player dies shortly after winning, with the lottery paying little.
Players of these games like the possibility of receiving a "lifetime" of lottery payments, perhaps with the goal of an early retirement. On the other hand, many winners who have the choice of lump sum or annuity payments choose the cash option (for different reasons), which "lifetime" payout games, especially in draw game form, often lack.