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 The Other Sure Thing Though we don’t like to think about it, all of us will make an exit sometime. Are you prepared? When Life Insurance Becomes Taxable Life insurance proceeds are generally tax-free. But not in all cases. Protecting Those Who Matter Most The importance of life insurance, how it works, and how much coverage you need.