Well, duh. You don't want a 30-year annuity unless you'll be alive in 30 years. (However, you are unfortunately wrong about the lump sum being worth less than the annuity. The lump sum is essentially the amount that the lottery commission would use to buy government bonds that pay out half a billion dollars over 30 years. Half a billion dollars over 30 years does not cost half a billion dollars in the present. Since most people with millions of dollars will not invest it 100% in government bonds, the lump sum is typically the better choice. The main benefit of the annuity is actually that it protects undisciplined people from spending the winnings too fast.)