What option is recommended for an endowment policy owner at age 65 who wants to provide monthly donations to a church?

The interest option is the recommended choice for an endowment policy owner at age 65 who wishes to provide monthly donations to a church because this method allows the policyholder to receive the policy's cash value in the form of interest payments. By choosing this option, the policyholder can have a steady stream of income generated from the interest earned on the cash value, which can be allocated for monthly donations.

This approach is advantageous because it allows the policyholder to maintain the principal amount of the cash value while utilizing the generated interest for charitable contributions. This way, the support to the church can be ongoing and sustainable, while the policyholder retains access to the cash value in case of emergencies or for other financial needs.

In contrast, the cash value option would require withdrawing the cash value, which may not provide a consistent income stream for monthly donations. A lump sum payout would provide immediate cash but would not generate ongoing financial support for the church. The termination option would result in the cancellation of the policy, and any benefits or cash value would be lost. Thus, the interest option presents the ideal balance of providing ongoing financial support while preserving the benefits of the policy.