What does $200,000 a year for life really mean?

February 22, 2011 Posted by NC Lottery at 1:44 PM

It’s no shock to us that players often ask what “for life” means when it comes to lottery games that have prizes that are paid “for life.” Since we just introduced the $200,000 a year for life game on January 25, we figured now would be the perfect time to answer that question.

The first thing to know is that if you were to win one of the top prizes of $200,000 a year for life, you will continue to receive a check every year of your life, as long as you’re living and breathing. If for some reason you were to stop living and breathing (i.e. you die), your estate (whoever legally controls your possessions after you die) would continue to receive the prize money each year until a total of 20 payments had been made ($4 million guaranteed).

So, $200,000 a year for life means exactly that. If a winner lives for 50 years after winning the top prize, they will get a check every year for the rest of their life. If for some reason that person won, received their first check, and then suddenly died, their estate would still receive checks for another 19 years to reach the 20-year guaranteed prize payout. The system works similarly for folks who win $50,000 a year for life playing this game.

We met the first top prize winner, Michael Stutts of Morrisville, on February 4. He’s 53 years of age and won $200,000 a year for life. His thought on the topic? “I hope you will wish me a long and healthy life.”

You may be familiar with the term “annuity” to describe prizes that are paid annually. For some games, like Powerball or Mega Millions, players who win the jackpot prize can elect to take their winnings as a lump sum rather than as an annuity. Because of the way this particular game is structured, there is no cash option for $200,000 a year for life. The top prizes of $200,000 a year for life and $50,000 a year for life prizes will be paid to winners in annual installments.

As with every other lottery game, the odds of winning change as prizes are won, and there’s no getting around the fact that taxes must be withheld on prizes. Is there anything else you’d like to know?

82 COMMENTS

4/06/2011 10:09 - mike v.

real simple then why dont you have a poll on the lucke-zone homepage to see if other people would like an instant ticket with better odds of hittin mid level prizes rather than 3 poeple in the state winnin the big one ...hey its gambling anyway you look at it and im sure a 10 dollar ticket with great odds of hittin for 1000 - 5000 would appeal to more people than you think ...and as for your comment bout the pick 3 an 4 , no thanks id rather be scratchin ...lol

3/31/2011 09:36 - NC Lottery

@ HARLEY - the Wilco Hess where Mr. Griffin bought the jackpot-winning ticket is one of about 150 retailers in Buncombe County. There are more than 6,500 retailers in North Carolina... the lottery has paid out more than $3.3 billion in prizes; a winning ticket, big or small, could show up at any retailer.

3/30/2011 11:39 - Christy A.

The man that won the Powerball in Asheville, NC at the Wilco Hess store is the only big winner that has won at that store they have not even had nobody win big on any of the scratch off tickets since he has won it seems strange nobody hitting big on any of the scratch off's looks like it's rigged to me. What's the deal with that?

3/30/2011 09:58 - kevin h.

i've played the lotto for a while now the only big winner i've had is 500 on the 200,000 for life but you have to remember its a game of chance if you dnt have fun with it then its not a game anymore i play to win but i think most of us do but im happy if i get my money back

3/30/2011 08:52 - JOANN M.

I AM LOOKING FORWARD TO MY BIG WIN,I HAVE KNOWN FOR YEARS THAT ONE DAY SOON I WILL BE A BIG WINNER IN THE LOTTERY. ALL I CAN SAY IS THANK YOU LORD YOU DID IT FOR ME. AND THE FIRST THING I AM GOING TO DO IS GIVE GOD HIS OFF THE TOP. THEN I WILL TAKE A TRIP TO HAWAII.

3/30/2011 01:58 - Sandra S.

It's not a Dollar & A Dream..It's the Blessing of the good Lord first, then the dollar and the dream...AMEN

3/28/2011 09:39 - NC Lottery

@ MARYJANE - it's all just a matter of luck. Every player in North Carolina has the same chance of getting the winning numbers on their ticket as someone who buys a ticket some place else. But North Carolina has had four jackpot winners since 2006 which is actually a much better per year average than in some other states. (P.S. we had two $250,000-winning Mega Millions tix from Friday's drawing sold in N.C. - they would have been worth $1 million each if they'd been $2 Megaplier tix)

3/27/2011 10:00 - Mary C.

WHY????????? Is it always another state winning the Jackpot and hardly ever North Carolina?

3/26/2011 10:07 - NC Lottery

@ PIEGUY72 - elected officials in the state government decide on the law that says where lottery funds go. Right now, lottery funds must go to support school construction, pre-kindergarten, teacher salaries, and need-based college scholarships. Your idea to have a game that has lots of mid-range prizes instead of really huge prizes is something that might appeal to you, but it's not clear if enough other players would want to play a game like that. While we know people would be happy to win $500-$5000, a lot of people play instant games because they want to win much bigger prizes. You might like playing games like Pick 3, Pick 4 and Cash 5 - they cost $1 for a ticket and the prizes are more along the lines of what you're talking about.

3/26/2011 05:00 - mike v.

so it would seem to me in these "tough" economical times that we need a scratch off or a raffle geared toward more of giving the "common person ' a lil help instead of that huge winfall..don't get me wrong i play religiously and am waitin for the big one but i wonder ..instead of making a ticket or a raffle with a bunch of million dollar top prizes why cant they just simplify things and just have a bunch of 500 , 1000, 2000, and 5000 dollar prizes ...just think how many 5000 dollar prizes are in just 1 million dollar prize and i think everyone could use 5000 for something ...make it happen

3/26/2011 02:06 - Teresa J.

I really enjoy playing pick 3 and scratch offs but there really do need to be more winning scratch offs make this happen please and as far as pick 3 goes there is a systematic rythem to it so get to it and maybe more people will play as i said i'am proud to play and help education but can i win too! my lucky number is GOD and who? smile with me.

3/24/2011 04:16 - Bennie P.

A bird in the hand, is worth two in the bush, if that bird is desperately needed. But if you are in a position to play catch and release then do so.

3/23/2011 05:06 - tom k.

I would like to know how many losers there are ? And why dont they do a show on losers and their life.Compared to the show that has all winners.

3/21/2011 10:14 - NC Lottery

@ikefree - There's no advantage to quick pick or picking your own #'s. About 75% of folks quick pick, and about 75% of winners are on quick pick tickets. Which means that the exact same proportion of people win picking their own numbers versus quick pick.

3/21/2011 10:08 - NC Lottery

@ Robin - Everyone who plays a lottery game has the same chance of winning. But there's no guarantee of winning. We've had plenty of winners from small towns but there are over 9 million people in North Carolina, so keep in mind that there are lots of other places winning tickets could show up besides Shelby. Winning tickets are distributed at random throughout the entire printing run of tickets and nobody knows who will end up getting one. Three of North Carolina's four jackpot winners are from east of I-95. Not all lottery tickets can be winners, but everyone who plays the lottery helps raise money for education in the state which is something everyone can be proud of.

3/21/2011 10:00 - NC Lottery

@ gastongyrl - Jackpot winners can choose to get annual payments or the lump sum amount. The total of the annuity payments is larger because of the interest that accumulates on the money over the years as it's paid out rather than as a single payment. The check is not cut the same day but within a matter of days of claiming the prize.

3/21/2011 09:58 - NC Lottery

@ Joanne, if you visit our website, you can check the winning numbers that were drawn for any date. Just click on Games > Pick 3

3/21/2011 09:51 - NC Lottery

@ Calvin - You can see how many top prizes are left for any instant game on our website, by clicking on Games > Instant Games and then locating the specific game you're interested in. It will show you how many top prizes remain and how many the game launched with.

3/21/2011 12:55 - isaiah f.

how do most people win,quick pick or pick there own.

3/20/2011 10:40 - Robin B.

I live in Shelby, NC- in Cleveland County. In five years, we've only had a "few" big scratch off winners. There's also been just a "few" Powerball, Cash 5, Mega winners etc., in this Co., and surrounding counties. If people will notice on the winners page on the NC Lottery's official site, the "largest" percentage of "BIG" winning tickets, in most "all" games are, and have always been, in the eastern part of NC. I would like to know "WHY" this is? I've also seen big winning tickets bought at the same store multiple times. There is "definitely" something "very" wrong with the distribution of the scratch off tickets! This needs to be changed! Everyone, everywhere in NC should have an equal chance for the big winning scratch off tickets. People will stop playing when they realize that all the big tickets are sold in the eastern part of the state! It's sad that millions of people have been wasting $ for five years because of this!

3/19/2011 09:42 - angela c.

how long does it take to get your winnings if u won the mega or powerball jackpot? do you get it that day you claim it or is a month or so before u get the actual lump sum or installment payments.

3/19/2011 07:57 - joanne p.

Where do I look for numbers I picked,to see if one number was 366?

3/19/2011 03:13 - Christine W.

i just want to live the rest of my life to helping people and travel over the world

3/19/2011 12:44 - calvinj m.

How do I find out how many potential winners are left for the 200,000 or 50,000 for life scratch off or how many current winners since initiating this game?

3/16/2011 02:13 - sunday a.

Am positively sure my time would come to win a very Big Lottery to enjoy with my famlys, friends, pals. and the needy would sure enjoy thier share of the fortune so pls wish me lucks

3/16/2011 11:15 - NC Lottery

@lisajo13 - glad to hear that you enjoy playing, but please remember that while everyone has a chance of winning big, there's no guarantee of that. So please only play while you continue to enjoy it.

3/16/2011 10:42 - Lisa R.

I have spent a lot of money on the lottery, since it came to NC, It almost makes me sick to add up the money. But, it is my choice and I do enjoy playing. I just hope one day it will pay off.

3/15/2011 11:51 - Edna H.

I didnt pray for winning numbers.Butidid ask for a blessing with one of the big games.It dont have to be a only winning ticket.Just need to be blessed.

3/15/2011 10:03 - Liticia H.

IF YOU WOKE UP THIS MORNING YOU'VE ALREADY WON THE BIG TICKET. GOD GRANTS NEW MERCY EVERYDAY, SO ALWAYS PLAY FOR FUN AND LEAVE EVERYTHING TO GOD IN PRAYER.

3/14/2011 10:37 - NC Lottery

@ tom - there is no guarantee of winning a prize, big or small, on any lottery ticket - only the chance to win

3/14/2011 10:18 - Tracy C.

That is a depressing way to look at things. Sure disappointments are part of life, but you have to learn to enjoy the little things and not dwell on the bad things. If I win a few dollars here and there, I am cool with that.Keep dreaming and playing, you never know when and how it will pay off.

3/13/2011 06:09 - Donald R.

play for fun, don't expect to get rich,riches may come,but mostly disappointment comes.

3/13/2011 01:30 - william c.

ived alot and reived very little there are so many tickets out there with nothing on them 20 dollar tickets 10 dallors with nothing on them alot more loosers than winners and our cash 5 game needs to be played and payouts the way va does them money would move alot quicker

3/12/2011 10:57 - Tracy C.

we are all in it to win it. It's not a game of chance/luck, if God wants to bless you he will, but on his time table, not ours.All we can do is hope for the best, because he knows what is best, and will prosper us in his due time,or not, it is ultimately up to him.Praised be his name.

3/12/2011 10:22 - Bonnie S.

i'm hoping its 1 1 5

3/12/2011 12:35 - Isalene J.

I want to win Why don`t Harmony Union Grove have more winners, We get all the crap I think this is From the PB, MM. And S_OFF Well at the end of March I am gone Made a Pinkie deal with Sonlaw I would stop if I did not win nothen by end of March I guess you want get my $80, no more Hello Grandkid I guess it money in your bank

3/11/2011 03:53 - john h.

winning pick three for tonite is:...2...6...8

3/08/2011 10:38 - THOMAS B.

I love my new community of North Carolina Education Lottery fans. This is going t be nice. Welcome Lucke Zone!

3/08/2011 12:12 - Barbara R.

I am really loving the 200k/Life game, I bought my first ticket and won $30. I played back another ticket and won $20! Hopefully I will win biggger than these amounts today. It is a lot of fun! Hoping to win big off of this game!

3/08/2011 02:36 - Lakisha P.

I would just like to win big one day to take care of my mother. she has always been there for me and has helped with taking care of my son. She is th best and i would love to repay her so she could stop working. She truly deserves it. This is why I would love to win. PLEASE BLESS ME GOD!!!!!!

3/08/2011 02:28 - Lakisha P.

I know my time is coming soon. God is going to bless me. I just try to stay positive. I can't wait to win. My whole family will be okay. I have faith :)

3/07/2011 03:47 - NC Lottery

@hubby - We are not waiting to put out any winning tickets for $200,000 a Year for Life. It doesn't work that way. We don't withhold winning tickets and then release them. The computers automatically distribute winning tickets at random throughout the entire printing run for a game, and then as stores order more tickets, more rolls of tickets are shipped to each store. There's no way of telling when or where a winning ticket will show up.

3/07/2011 03:16 - Lenora T.

Are you guys waiting to put out the other two winning scratchers for 200,000 for life because I see only one person has won thus far? How do those who buy scratchers know if the other two are really out there just like with the poker which still has five left. That game has been out there for a very long time which leads one to believe that is how it's set up which is somewhat misleading to those whobfaithfully

3/07/2011 10:09 - NC Lottery

@chaingang - glad you enjoy playing! The money ABSOLUTELY goes to benefit education, in all 100 counties of North Carolina! Here is a link to county-by-county numbers, from start-up through last June: http://bit.ly/eqa9w1

3/07/2011 10:08 - NC Lottery

@walkerel2000 - the deadline for the next Harley drawing is this Wednesday, March 9. There is also one instant-win Harley out there somewhere, still unclaimed as of right now.

3/07/2011 10:07 - NC Lottery

@myjoy - on your question about taxes, not sure what you mean. when someone claims a prize over $600, we automatically withhold 25% federal and 7% state taxes... but a winner's overall tax obligation depends on their total income and all the complex details of their financial situation. There's no penalty for winning, its just the way things work.

3/06/2011 11:24 - Bianco W.

Interesting questions and comments. I had some of the same questions. Someone actually told me that the winning ticket is often sold just before the cut off time of 10PM. I wonder if there is any truth to that.

3/06/2011 06:13 - Virginia G.

I hope my lucky day will be soon!!!!!!!!!!!!

3/06/2011 01:46 - Kent G.

Love the lottery, I just hope SOME of the money really makes it to the education area!

3/06/2011 05:33 - Edward W.

when are we to get another chance at a Harley?

3/06/2011 01:02 - Louise D.

I BE ONE OF THE MOST HAPPY PERSON IN THE WORLD. IF ONLY I HAVE ONE CHANCE OF WINNING $2 MILLION FOR LIFE! FIRST THING I WOULD DO, IS BUY A HOME, SO MY GRANDCHILDRENS HAVE A PLACE TO COME TO VIST THERE GRANDMOM! WITHOUT SO MUCH DRAMA!

3/05/2011 05:41 - lisa m.

it would be nice to win big.

3/05/2011 09:11 - Lenora T.

Why is one taxed again after you guys have already taxed one after a really big win?What's the use of playing if you are constantly taxed? It's like you are penalized for winning. Help me understand the process.

3/04/2011 01:56 - Julia M.

I am just waiting for "my" time to come!

3/04/2011 12:56 - NC Lottery

@ PSNDUHAM - the advertised odds of winning the jackpot playing Powerball are greater than 1 in 195 million. That certainly accounts for why the jackpot rolls many times and when it is won, it is usually one or very few tickets that match all six numbers.

3/04/2011 12:04 - Patricia S.

Winners of the Big Money games: #1 - I believe that during that time period after 10pm, you have fast (Watson-like) computers spit out a listing (electronically, of course) the numbers that are issued to all who play the game. After it has been determined the one or two numbers which were issued...(with NCEL selecting the dollar amount), you then announce the "winning" numbers at 11pm. It just doesn't make any sense that there's only one--and sometimes--two individuals could only be a winner in the Big Jackpot lottery games.

3/03/2011 10:48 - betty l.

I REALLY NEED A WIN RIGHT NOW, NOT ESPECIALLY BECOMING A MILLIONAIRE. BUT TO BE BLESSED WITH A WINNING TICKET.

3/02/2011 02:39 - jeanette b.

Oh Great Lottery Gods Please send me to the winners circle!!!!! I sure need a blessing but I sure like to give them 2!!!!!AMEN....

3/02/2011 12:49 - lydia d.

could you give me a hint on what i am doing wrong by mixing my numbers

3/01/2011 09:22 - tammy s.

Just send me the lucky numbers!!!!!!!!!!!!!!!

2/28/2011 03:05 - NC Lottery

@ MRB5 - usually, people have the option to have their picture taken. When it comes to "really big" wins like jackpots, there is usually no way around the publicity.

2/28/2011 12:31 - Judith C.

Congrats!!! Such a nice blessing, enjoy !!!

2/27/2011 10:54 - mary b.

If I win a really big one, do I have to have my picture taken?

2/25/2011 07:42 - Millicent E.

Where are those other BIG Tickets???

2/25/2011 05:16 - NC Lottery

@Kim - Taxes are withheld on the front end. But with everyone's financial situation being different, we urge winners to speak to their accountant early on so there aren't any surprises the following year.

2/25/2011 05:14 - NC Lottery

@Augie - I have forwarded your request to our developers. Thanks!

2/25/2011 05:13 - NC Lottery

@Perry - If for some reason you were to stop living and breathing (i.e. you die), your estate (whoever legally controls your possessions after you die) would continue to receive the prize money each year until a total of 20 payments had been made ($4 million guaranteed).

2/25/2011 05:12 - NC Lottery

@Frank - It all depends on the number of entries into each drawing, which can vary greatly.

2/25/2011 05:09 - NC Lottery

@JoeClark There's a draw break prior to evening drawings so that accounting and tabulations can be done between all states involved.

2/25/2011 05:08 - NC Lottery

@JoeClark There's a draw break prior to evening drawings so that accounting and tabulations can be done between all states involved.

2/25/2011 01:33 - mary h.

how and when can i win big!!!!!hahaha

2/25/2011 01:20 - Diane B.

2/25/2011 11:33 - Karen D.

What a blessing that must be!

2/25/2011 12:49 - Kimberly B.

Is taxes already taken out before you recieve your annual payment or do you have to file at the end of the year?

2/24/2011 11:49 - Olga C.

I noticed in the pool playing category you did not include the "Pick 4" calendar. Can this feature be added perhaps in the future?

2/24/2011 09:45 - Perry T.

In the event of my death before or after the initial 20 years; will the annual payment be re-directed to my beneficiary or discontinued?

2/24/2011 08:06 - sunday a.

congrats for wining and hope we join u soon to be a lucky one

2/24/2011 05:34 - Calvin B.

LIVE*LOVE*LAUGH ENJOY!!!!

2/24/2011 05:32 - Calvin B.

LIVE*LOVE*LAUGH ENJOY!!!!

2/24/2011 03:31 - DAVID H.

I need winning numbers. Thank You

2/24/2011 02:54 - Franklyn G.

Just wondering what are the chances of two people from the same city winning the 2 Motorcycles picked in the SECOND CHANCE Win A HARLEY game?

2/24/2011 02:23 - Joe C.

I have a question can anyone tell me why they stop selling lottery tickets at 10:00 pm and do not have the drawing until 11:20pm I am just curious, Thanks for your help

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What does $200,000 a year for life really mean?

February 22, 2011 Posted by NC Lottery at 1:44 PM

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