What is a Term? Term[turm]noun1.The Term is the length of time a specific insurance Policy is effective. This feature is most commonly found in life insurance, where the Policy is only good for a specific length of time, or “term” of a person’s life. Share | Have A Question About This Topic? Address Thank you! Oops! Related Contents If You're In An Accident Do you know what to do if you're in a car accident? The ABC’s of Auto Insurance What kind of auto insurance should you have? Do you know? Protecting Those Who Matter Most The importance of life insurance, how it works, and how much coverage you need.