Set For Life.

[melv16]

If I won the top prize of 10k a month for 30yrs and I died, say in 2yrs. Would my family be able to claim the prize money?

[evadora]

I believe they set up an anuity when you win. When you die the remainder goes to your next of kin .

[melv16]

Thanks for your reply.

[evadora]

You are welcome.

[THECORBYLOON]

It is paid to the Estate, not the next-of-kin.

[ToraToraTora]

if it's an annuity then it ends on death. It can have a minumim term so the NOK will get any unexpired years but I suspect that will only be 5 years max or the annuity will be prohibitively expensive. The cost of the annuity will also vary depending on the age of the winner. Quite a complex calculation but to get £120k for potentially 30 years will cost over £50m so I suspect they just self insure and pay out the 10k for N-30 years.

[dannyk13]

Scroll down to 'What happens if a top prize winner dies?'
https://www.national-lottery.co.uk/games/set-for-life/about-set-for-life#What-happens-to-the-top-prize-money-if-a-winner-dies

[ToraToraTora]

ok danny well they talk about a "policy" so it looks like it is an annuity.

[ToraToraTora]

they must have a specialist provider or even their own company, it's very difficult to get an annuity for someone under 55, so what if someone much younger wins? As an example from current rates, for a single standard flat rate annuity for 65 with no guarantee you can get 5k per 100k so lets say 5% so to get 120k you'd need to pay £24m and that's with no guarantee. For someone much younger with effectively a 30year guarantee? a lot lot more if anyone would touch it.

[melv16]

^^scratches head^^:-)

[LadyCG]

My colleague knows someone who won the top prize. Apparently if she dies her husband automatically gets the rest in a lump sum.

£120,000 a year for 30 years is £3.6m. If you died 6 months into the 30-year term your spouse would get £3,540,000.

I haven't verified this (CBA) but this is what I was told.

[ToraToraTora]

sorry quite right I was out x 10 doh! apologies divide my figures by 10! senior moment.