but that $200k or so might help them out financially.
$200k would help me out financially right now, so you should give it to me.
I'm pretty sure you'd take the money if you were put in the situation.
Also, such a tragedy would likely put one into a severe depression, preventing him/her from being able to work and therefore preventing him/her from earning money that he/she ordinarily would have earned. Therefore it makes sense that this person should receive financial assistance, and that there is nothing insensible about asking for it.
It's not a question of whether the money will bring back her son. That argument applied to justice is totally fallacious. Should the driver not be imprisoned because that wouldn't bring back the victim? There are other things to consider.
I might take the money because I'm greedy, not because I think it would be just.
Losing a kid sucks, and perhaps you're right that they deserve some financial assistance so they can take off work and mourn properly. But I think that people care too much about the money, as evidenced by responses in this thread. The kid's life is way more important than money, but people here seem eager to look for the money.
And no, but the insurance company sending the person money isn't going to change anything. On the other hand, if the person who killed the kid went to jail, he's not going to do that again; and if people who they might go to jail, they are going to be a lot more wary. I think that a lot of the stuff about jail-time is about prevention, not punishment.