So I have been seeing these commercials for free rent for life on TV through an online apartment search website, and today I entered. When reviewing the official rules, I see that if you win you can choose between an annuity that will pay your current rent amount (without future adjustment) up to $1,700/month or a lump sum amount of $545,000. This got me to thinking and daydreaming about what I would choose.
Because I will obviously be the one to win this*, I was wondering what each of you would select (so that I can make the best choice when my time comes).
Here are the rules regarding prizes
Prizes: The one (1) Rent for Life winner will receive their choice of: (i) an annuity for winner’s lifetime based on their current monthly rent as of the date of winner selection, not to exceed $1,700/month without any future adjustment to amount or value, or (ii) a one-time lump sum payment of $545,000. Rent for Life winner may select either option but selection of annuity is subject to the policy’s terms and conditions. (approximate retail value of Rent for Life Prize based on present day value: $545,000).
Factors that influence my decision. I currently pay rent at over the maximum so I would get the $1,700/month for life. I am 29 and intend to live beyond the 26 year break-even point.
Because of these factors, I am leaning towards the annuity.
This is just for fun, but would like to hear other's thoughts on lump sum vs. long-term payout. It is nice to dream :)
*Also, because I know that I will be the one to win, nobody else here should enter the contest...but if you do and you win, maybe you could cut me in a little for letting you know about it :)