Difference Between Cash Value and Annuity

If you win a Mega Millions jackpot, you will choose how to be paid: Cash Option or Annual Payout. Prize claim parameters vary from state to state. Contact your Mega Millions lottery for detailed information.

Annuity option: The Mega Millions annuity is paid out as one immediate payment followed by 29 annual payments. Each payment is 5% bigger than the previous one. This helps protect winners’ lifestyle and purchasing power in periods of inflation.

For a typical jackpot of $100 million, the initial payment would be about $1.5 million, and future annual payments would grow to about $6.2 million.

When the jackpot is $200 million, each payment is twice as big. When the jackpot is $50 million, each payment is half as big, etc.

Cash option: A one-time, lump-sum payment that is equal to the cash in the Mega Millions jackpot prize pool.