Which of the following is a common reason for purchasing a life insurance policy?

A common reason for purchasing a life insurance policy is to cover education expenses. Many individuals consider life insurance as a way to protect their family's financial future. In the event of the policyholder's untimely death, the life insurance payout can provide the necessary funds to ensure that dependents, particularly children, can continue their education without a financial burden. This is especially important for parents who want to make certain that their children have the opportunity to pursue higher education, which can be a significant financial commitment.

In contrast, maintaining an investment portfolio and acquiring immediate cash value are generally not primary motivations for purchasing life insurance. While some life insurance policies do accumulate cash value over time, this aspect is usually secondary to the main purpose of providing financial protection. Additionally, while a life insurance policy can serve as part of a broader financial plan that includes retirement savings, it is not typically focused on securing a retirement plan in isolation.