A policy term is the length of time your insurance policy remains active and provides coverage.
Simple Meaning
Policy term = the duration of your insurance plan.
Example
If your life insurance has a 20-year policy term, it means:
- The policy will provide coverage for 20 years
- You must pay premiums during this period
- Claims made within these 20 years will be paid according to the policy
Where Policy Term Applies
- Life insurance → 10, 15, 20, 30 years, or even lifetime
- Health insurance → usually 1 year or multi-year (2–3 years)
- Car/Bike insurance → 1 year or long-term (3–5 years)
- Travel insurance → single trip or yearly multi-trip
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