What financial advantage might an insured gain from charitable life insurance?

When an individual takes out a life insurance policy with the intention of naming a charity as the beneficiary, they can potentially benefit from a tax deduction for the policy proceeds that are ultimately given to that charity. This financial advantage arises from the IRS provisions that allow individuals to deduct contributions made to qualified charitable organizations.

By naming a charity as the beneficiary, the insured ensures that the policy's death benefit goes directly to the charity upon their passing. This not only supports the charitable cause but also provides the insured with a tax benefit. The tax deduction can reduce taxable income during their lifetime or provide estate tax benefits, depending on how the policy is structured and the individual's overall financial and estate situation.

The other options do not accurately reflect the specific benefits associated with charitable life insurance. While cash value accumulation might occur in some permanent life insurance policies, it is not the primary financial advantage related to charitable giving. Similarly, guaranteed returns on investments are not generally a feature of life insurance policies, and while a higher payout may be possible under certain circumstances, it is not inherently tied to charitable policies specifically.