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 Extended Care: A Patchwork of Possibilities What is your plan for health care during retirement? Gap Insurance for Leased Cars If you’re thinking of leasing a new car, then you shouldn’t forget about gap insurance. Assess Your Life Insurance Needs This calculator estimates how much life insurance you would need to meet your family's needs if you were to die prematurely.