Term

What Does Term Mean?

A term refers to the specific period during which an insurance contract is valid. It may also refer to the conditions under which an insurance obligation is assumed or an agreement is established. In insurance, these terms are outlined in the insurance contract, though they are typically referred to as conditions.

Insuranceopedia Explains Term

For example, term life insurance is a type of insurance that provides coverage for a fixed, limited period of time, or term. This differs from typical life insurance, which offers coverage for an individual’s lifetime.

Other types of insurance are also provided for a specific term. The expiration of coverage is clearly stated in the insurance contract.