What are the things need to do while starting an insurance policy?

I am going to start an insurance policy in Newyork life insurance policy. I am taking policy through one of my friends. I just want to know what are the things I need to ask them for clarification while taking this insurance policy. I am not aware of the interest rate or any other benefits. Can you pls guide me with this?

Why insurance companies charge fund management fees from ULIP holders?

In the recent economic crisis, a huge number of Unit Linked Insurance policy holders suffered heavy losses. Insurance companies deduct 2.25% on a regular basis as fund management charges. Had "fund managers" switch the money from equity to debt fund on time, ULIP holders would not have suffered such heavy losses. Is there any justification in insurance companies charging fund management fee when they cannot do the job properly?

Should I go for child insurance (or) mutual funds?

I have a 1 month old daughter. I want to save regularly for my daughter's education. I was wondering if I should go for a child insurance plan by any of the insurance companies (or) should I invest in any of the children mutual funds? Is there any other better way to invest?