Term life insurance provides coverage for a specified period (e.g., 10, 20, or 30 years), offering a death benefit if the insured passes away during the term. Permanent life insurance, on the other hand, offers coverage for the entire lifetime of the insured and includes a cash value component that accumulates over time.

Index universal life insurance is a type of permanent life insurance that offers a death benefit along with a cash value component linked to the performance of a stock market index, such as the S&P 500. Policyholders have the potential for higher returns compared to traditional universal life insurance, with downside protection against market downturns.

Permanent life insurance provides coverage for the insured's entire lifetime, builds cash value over time, and may offer tax advantages. Additionally, it offers the potential for financial flexibility with features like policy loans and withdrawals.

There are various methods to determine the appropriate amount of life insurance coverage, including calculating future financial obligations, such as mortgage payments, education expenses, and income replacement needs. It's also essential to consider individual circumstances and financial goals.

Many term life insurance policies offer the option to convert to a permanent life insurance policy within a specified timeframe, typically without the need for a medical exam. This allows policyholders to extend coverage beyond the initial term.

The choice between term and permanent life insurance depends on individual circumstances and financial goals. Term life insurance may be suitable for temporary needs, such as income replacement or mortgage protection, while permanent life insurance offers lifetime coverage and additional benefits like cash value accumulation.