Certain lotteries offer jackpot winners a choice between receiving their prize as an annuity or as a cash lump sum payment. If you choose the annuity option, your prize will be paid out in instalments over a fixed number of years. If you request the cash lump sum option, you will receive the entire prize up front. Lump sum payments are less than the total amount given to a winner in annuity payments, with the amount varying according to lottery policy. In addition, some lottery prizes are taxed at source, so the take home prize will actually be much less than the advertised jackpot.