An educational policy is a life insurance policy specially designed as a savings product to provide an amount of money for your child’s education. When the fund matures, the fund value of the investment is paid. In the event of critical illness, usually an agreed percentage of the fund is paid immediately and the policy runs at no cost. In the circumstance of death, the insured’s beneficiaries immediately receive a lump sum and cash benefits in full at maturity, while the policy runs at no cost.