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? Address Thank you! Oops! Related Contents Extended Care: A Patchwork of Possibilities What is your plan for health care during retirement? Errors and Omissions Insurance E&O insurance is specifically designed to protect you, or your company, from the risk of a client’s dissatisfaction. Disability Income This calculator estimates your chances of becoming disabled and your potential need for disability insurance.