What is meant by 'insurance policy term'?

The concept of 'insurance policy term' refers specifically to the duration for which the insurance coverage is in effect. This period can vary widely depending on the type of insurance and the specific terms agreed upon when the policy is issued. During this time, the policyholder is protected under the outlined conditions, and any claims that arise within this time frame can be made in accordance with the policy provisions.

Understanding the insurance policy term is crucial for both the insurer and the insured. It defines when the coverage starts and ends, and influences the premium payments, as longer terms may lead to higher costs. Once this term expires, the coverage ceases unless renewed or extended, meaning that after the policy term, any events or claims occurring would not be covered unless a new policy is in effect.