Here is the question: There is a person who has worked with asbestos for a large construction company and has contracted Pleural Mesothelioma. The person is entitled to a large settlement from this company but how could that person decide which of the following two options is better? What is the information needed in order to make a sound decision:
1. One lump sum settlement.
2. A structured Settlement.
Under a structured settlement, an injury victim doesn't receive compensation for his or her injuries in one lump sum. Rather, he will receive a stream of tax-free payments tailored to meet future medical expenses and basic living needs.
Let us say that one lump sum settlement is 'S' and that the structured settlement payments are 'P' once a year. If the person is likely to live for 'X' amount of years. What would the equation be to determine which choice is more financially sound?
Thanks for any help.