The strange business of hole-in-one insurance
&gt; Gilmartin has also had to pay out at least 4 $1m prizes, which are typically awarded in annuities. Hargett, who landed that shot in Utah, got $25k&#x2F;year for 40 years<p>Why would anyone accept that payment schedule? Sure 25k*40 is a million, but there is a non-zero chance that the insurance company will fold in that time. Plus 25k in 40 years is worth a lot less than 25k today due to inflation.<p>If they advertised a million dollar prize, I win it and then they tell me it is actually 25k over 40 years I would be calling my lawyer there and then to negotiate with them.