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 Combine Your Policies and Save Some things just make perfect sense in pairs. What is a Dwelling Fire Policy? Do you know what a Dwelling Fire Policy is? Protecting Those Who Matter Most The importance of life insurance, how it works, and how much coverage you need.