# Of Months In A Term
Overview
This field determines the lifespan of a policy term. It is used to automatically generate the Renewal Date.
📈 Calculation Logic
By adding the number of months specified here to the Effective Date, the system identifies the exact date the policy is set to renew.
- Example: A 6-month term starting on 01/01 will result in a 07/01 renewal date.
💡 Best Practices
- ✅ Standardization: Most health and life policies use a 12-month term, while some P&C lines may use 6-month terms.
- ✅ Proactive Service: Use the calculated Renewal Date to fuel your "Upcoming Renewals" reports.