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?

is Birla Sun life short term fund good?

I got to know it is open ended(liquid) fund which uses money in daily bank transactions. It gets returns on one day basis which is 7-8% and no tax on return. this is benifit over FD. Similar Reliance fund is there in market 'Reliance Liquid Treasury'. please give ur suggestion on this.