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 Question Thank you! Oops! Related Contents Forecast Life is as unpredictable as the weather. We’d love to help you prepare. Universal Life Insurance Universal life insurance is permanent insurance with a flexible premium. Here's how it works. Protecting Those Who Matter Most The importance of life insurance, how it works, and how much coverage you need.