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? Name Email Address Message Thank you! Oops! Related Content If You're In An Accident Do you know what to do if you're in a car accident? Side-by-Side: Insured vs. Uninsured Here's what happens if your small business has an accident and you're not insured. Protecting Those Who Matter Most The importance of life insurance, how it works, and how much coverage you need.