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 | Related Content Accidents Accidents happen to everyone. We’re here to help. Insurance Needs Assessment: For Empty Nesters and Retirees Do your insurance needs stay the same when the nest empties? Protecting Those Who Matter Most The importance of life insurance, how it works, and how much coverage you need.