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 Combine Your Policies and Save Some things just make perfect sense in pairs. Making Sense Of A Home Warranty Understanding the value of a home warranty. Protecting Those Who Matter Most The importance of life insurance, how it works, and how much coverage you need.