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 Combine Your Policies and Save Some things just make perfect sense in pairs. Term vs. Permanent Life Insurance When considering life insurance, it's important to understand your options. Protecting Those Who Matter Most The importance of life insurance, how it works, and how much coverage you need.