Hole In One Prizes

Golf insurance companies set very few limits on what can be offered as a hole-in-one prize. Tournament organizers can opt for prizes as little as $5,000 and up to $1 million, which can be paid out in either one lump sum or through a 40-year annuity. Cash prizes work well for everyone, as people can use cash for anything they want.

Gift prizes should always be fun in nature. Harley Davidson motorcycles, sports cars, and jet skis make ideal new toys for people who make holes in one. Gift prizes are sort of like birthday presents; many people prefer giving gifts they know people will use as opposed to just providing them with more money. The only drawback with very expensive prizes is that people often have to pay taxes on them. If someone wins a $30K car, he has to pay approximately $8,000 in taxes, which might force him to sell the car anyway.

Cash Awards and Insurance Coverage

Players who win cash always have enough money to pay their taxes. If they want new cars, they can use their winnings to buy their favorite automobiles. If they want to take vacations, they'll have that option as well. Personally, I'd always prefer to have cash, because I'd use the money for several things, like a nice dinner and a television for the bedroom for starters. Then I'd invest the remaining portion.

The higher the value of prizes, the more money insurance costs. Coverage also increases when more people participate in contests or when certain players are given more than one opportunity to sink holes in one. The cost of insurance per prize dollar increases when awards are given for accomplishments that are easier than holes in one.