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 The Other Sure Thing Though we don’t like to think about it, all of us will make an exit sometime. Are you prepared? What is a Loss? Do you know what a Loss is? Protecting Those Who Matter Most The importance of life insurance, how it works, and how much coverage you need.