Which type of life policy has premiums set for a fixed period of five years?

The correct choice is associated with a specific feature of a life insurance policy that distinguishes it from others. A maximum cover whole of life policy typically offers instant coverage for the insured amount and guarantees that premiums remain stable for a designated time frame, such as five years. After this period, the premiums may adjust based on underwriting decisions or other risk factors, but the initial stable premium structure is a notable characteristic.

Term life insurance generally provides coverage for a specific term, which can be one year to decades, but not typically tied to a fixed period like five years with the promise of coverage thereafter. Whole of life policies offer lifelong protection with premiums that are usually paid throughout the insured’s life, eliminating the concept of a fixed-term premium adjustment. Endowment policies are designed to pay out either on a specific date or upon the policyholder's death within the term, but they do not emphasize fixed-term premiums in the way described.

By understanding these distinctions, it's clear why the maximum cover whole of life policy is specifically designed around this fixed-period premium structure, making it the fitting answer to the question.