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 Contents The Best of Both Worlds Here are a few reasons we’ve chosen to be independent. Variable Universal Life Insurance Variable Universal Life is permanent insurance in which the policyholder directs how premiums are invested. Protecting Those Who Matter Most The importance of life insurance, how it works, and how much coverage you need.