Definition - What does Term mean?
A term refers to the specific period during which an insurance contract applies. It may also refer to the conditions under which an insurance obligation may be taken or an agreement reached. In insurance, the terms are stated in the insurance contract, although they are typically called conditions.
Insuranceopedia explains Term
For example, term life insurance is a type of insurance that provides coverage for a limited and fixed period of time, or term. This is unlike typical life insurance, which provides coverage for an individual's lifetime.
Other types of insurance are provided over a specific term as well. The expiration of coverage is stated in the insurance contract.