I know many do not like this game due to the small payouts, and annuity. But I could not believe it when I found out they don't even pay you $3,000 a month, or even $36,000 annually. After taxes it actually comes to about $27,000 annually, or $2250,00 per month. I have matched 4 out of 6 numbers 3 times so far out of about 100 plays. I was pretty upset to only receive $40 for matching 4 out of 6. Although I could live off of that much a month, and am now, it would not be all that great. I believe they should raise the prize to at least $5,000 per month for life, and even better "after taxes."
From lottery headquarters:
"The LUCKY FOR LIFE LOTTO jackpot prize -- $3, 000 a month for life --
is BEFORE taxes. LUCKY FOR LIFE top prizes are paid in annual
installments of $36,000, less federal withholding, which currently is 25
percent.
That is a for-life prize, as the name of the game suggests so you would
continue to received annual payments for as long as you live. However:
When you win the LUCKY FOR LIFE LOTTO top prize, we require that you
complete a beneficiary form that designates to whom your remaining
annuity payments go, should you be unable to collect a minimun of 30 years'
worth of installments ($1,080,000). Lottery places this form on file;
you may change your beneficiary (or beneficiaries) at any time. The
beneficiary (or beneficiaries) then receives any and all remaining annuity
payments -- up to and including $1,080,000 -- due to the winner's
untimely death. A beneficiary statement supercedes a will regarding Lottery
annuity payments.
For tax information, please contact either the Department of Revenue or
your local tax preparer. There are no state or local taxes charged to
Pennsylvania residents on Pennsylvania Lottery winnings."