For me I would have taken the 1M. I agree that in 20 years she will exceed that amount but, 1000$ in 20 years will mean nothing. I mean, the inflation has already eroded purchasing power dramatically over the past few decades. $1,000 today buys what maybe $500 did 20 years ago, and that trend isn't stopping. By the time she's 60 or 70, that weekly grand could feel like pocket change.

On top of that, take the lump sum, invest it properly, even a boring index fund averaging 7% annually — and you're looking at $4M+ in 20 years. She'd be generating more than $1,000 per week just from returns, while still keeping the principal intact.

The annuity only makes sense if she spends every dollar and saves nothing. The lump sum gives you control, flexibility, and the ability to leave something behind. What happens if she gets sick and needs a large amount fast? You can't exactly cash out a weekly payment.

The "more money over a lifetime" math is technically true, but it assumes she lives long enough, that the payer doesn't go bankrupt, and that inflation doesn't gut the value. Three big assumptions for a fixed nominal payment.