ULIPs vs Life Insurance – Compare the Types of Life Insurance

Ananya is a 15-year-old student who recently attended a financial literacy session in school. During the session, she learned about different types of life insurance and ULIPs. Curious to know more, she asked her parents about their insurance plans.

Her father told her that he had purchased a term insurance policy 10 years ago to ensure the family’s security in case anything happens to him. He pays a fixed premium each year, and the family will receive a lump sum if he passes away during the term.

Her mother, on the other hand, opted for a ULIP (Unit Linked Insurance Plan) 5 years ago. She pays ₹30,000 per year. Part of the money is used for life cover, and the rest is invested in equity and debt funds. She checks the fund value periodically and even switched from equity to debt when the market became volatile. She told Ananya that ULIPs give her the dual benefit of investment and insurance, and also help her plan long-term financial goals like retirement or education.

Ananya is amazed by how life insurance isn’t just about protection, but can also help people save, invest, and plan. She wants to start early and discuss with her parents how she can use this knowledge to plan for her future too.

Q1. Compare ULIPs and Term Insurance based on features such as flexibility, maturity benefits, and investment options.

Q2. Why do you think Ananya\'s mother switched her ULIP investment from equity to debt funds? What does it show about her financial behavior?

Q3. List two advantages of starting a life insurance or ULIP plan at a young age.

Q4. Suggest two reasons why term insurance might be more suitable than ULIPs for some people.

Types of Loans and Its Impact

Priya is a 15-year-old student from Pune who just got selected for an international robotics competition in Germany. She was thrilled and proud to represent her school and her country. The total cost of the 10-day trip, including flight, visa, stay, and training, was estimated at ₹2,50,000.

Her parents, both working professionals, could manage ₹1,70,000 from savings but still needed ₹80,000 urgently to meet the deadline for registration. They had two choices:

  • Take a short-term unsecured personal loan from a digital lender at 14% interest
  • Delay the trip by a year and try for scholarships, with the risk that the opportunity might not come again.

Priya and her parents sat down to discuss whether a personal loan was the right choice and how an EMI would impact their monthly budget

Q1. What type of loan would Priya’s parents be taking if they choose the digital lender, and what is one key feature of that loan?

Q2. Calculate the total interest Priya’s parents would pay if they borrow ₹80,000 for 1 year at 14% interest (simple interest).

Q3. What are 2 questions Priya’s parents should ask before taking the loan to avoid future repayment problems?

Q4. Do you think taking a loan for Priya’s trip is a good decision? Why or why not? Give 2 reasons.

Q5. If Priya’s parents take the loan and repay it in 6 EMIs, what steps should they follow to ensure timely repayment? (List any 2 good practices.)

Passive Income opportunities in the Teenage years

Mira, a class 9 student, had always loved reading books, especially fiction and fantasy. Over the years, she had built a mini library at home with books collected from school fairs, online sales, and family gifts. One day, while clearing her shelf, she realized many of her books were in excellent condition but rarely read.

Inspired by a discussion in class about passive income, Mira thought, “Why not rent these books to others in my neighborhood and earn some money while helping others enjoy reading?” She started a weekend book rental service using a simple Google Form and shared it via WhatsApp groups in her building and school.

Soon, she earned a small income every month. This motivated her to look into other sources of passive income for teenagers, like selling handmade bookmarks on Etsy, renting out her art tools, and even exploring investment platforms with her elder cousin.

Q1. Identify two passive income opportunities that Mira could explore other than renting books. Explain why they are suitable for a teenager.

Q2. Mira wants to start investing small amounts monthly. Which platforms can she explore as a beginner, and what precautions should she take?

Q3. How is passive income different from active income? Give one example of each.

Q4. If Mira wants to collaborate with a company to create paid bookmarks for an event, what steps should she follow to apply and pitch her idea?

Q5. Mira’s friend Aarav thinks passive income is not for teenagers. How would you explain to him that age is not a barrier to financial learning and growth?

E-KYC and its importance for Digital Payments

Zoya, a tech-savvy 14-year-old, recently began helping her parents manage small household tasks online. One day, while trying to recharge her metro card through a digital wallet app, she encountered a message: “Complete your KYC to increase wallet limits.”

Curious, she began researching what KYC meant. She discovered that to make full use of digital payments, she needed to complete an electronic KYC process. While helping her parents upload their ID and address proofs, she noticed different KYC requirements for different platforms.

Some asked for Aadhaar, some accepted PAN cards, while others even allowed Video KYC. Zoya wondered: Why do digital platforms need this information? and How often do we need to update this?

Now, she wants to teach her younger brother and his friends about e-KYC, its importance, the differences from physical KYC, and how to use it safely while avoiding fraud.

Q1. List any four documents that Zoya can submit for e-KYC. Explain why such documents are needed.

Q2. How is e-KYC different from physical KYC? Mention two risks of each method.

Q3. If Zoya’s cousin wants to use a payment app but hasn't done her KYC, what features might she miss? List 3 features and explain briefly.

Q4. Imagine your friend uploads incomplete or fake KYC documents online. What could be the consequences? How would you advise them to avoid such mistakes?

Q5. Do you think it's safe to share KYC documents online? Why or why not? What precautions should people take?

Digital Tools and Investments

Aanya, a class 9 student, recently saw a viral video about a “high return” investment scheme shared on a social media group. Curious, she clicked on the link and it redirected her to an app offering “crypto plans” with daily returns of 10%. She downloaded the app and entered her personal details, including her Aadhar number and school ID card.

Later, her friend Sameer showed her DigiLocker and explained that it is a safer way to store and share official documents. Aanya felt uneasy and checked the app again—only to find that her ₹5,000 deposit had disappeared and the app was no longer opening. Now worried, Aanya speaks to her teacher, who advises her on digital safety and teaches her about government-backed digital tools like DigiLocker and the risks of unverified digital platforms.

Q1. What mistake did Aanya make while using the investment app?

Q2. How could DigiLocker have helped Aanya manage her documents more safely?

Q3. What can Aanya do now to recover from this mistake and protect her identity?

Q4. In your opinion, should teenagers use platforms like DigiLocker? Why or why not?

Q5. What are two signs that an online investment or app could be a scam?

Debit Cards, Credit Cards & EMI

Aarav and his elder sister Ananya often talk about saving and spending. Aarav recently saw a new tablet worth ₹25,000 and wished to buy it. Ananya offered to buy it for him using her credit card and said he could repay her in monthly EMIs without interest.

This made Aarav curious: how could she pay without cash upfront? Ananya explained how credit cards work like a short-term loan and how EMIs (Equated Monthly Installments) help in breaking down large payments. She also warned him that if one doesn’t pay on time, interest charges and credit score damage can happen.

She showed him the difference between a debit card and a credit card, and how her salary goes into her account but credit card spending is borrowed money. Aarav decided to research more before using these tools in the future.

Q1. What is the basic difference between a credit card and a debit card?

Q2. What is a No-Cost EMI and how is it different from a regular EMI?

Q3. List two problems a person may face if they miss EMI payments.

Q4. Before choosing an EMI option, what two things should a person check in their budget?

Q5. Aarav’s friend wants to use a credit card for shopping, even without income. What would you advise him and why?

Business life cycle and product life cycle

Arjun, a class 9 student, noticed how plastic waste from regular water bottles was piling up in his school canteen. Determined to bring change, he came up with an idea: a smart reusable water bottle made with biodegradable material that could track water intake via a mobile app.

He researched the idea deeply and decided he wanted to turn it into a business after school. He imagined launching the product first in his city, then across India, and finally growing into an international brand. But before jumping in, he wanted to understand how businesses and products grow, and when to innovate or exit if needed.

To turn his idea into a real business, Arjun studied the Business Life Cycle and Product Life Cycle so that he could plan ahead and make smart financial decisions.

Q1. Identify the different stages of Arjun’s business idea using the Business Life Cycle framework. Explain what he should focus on in each stage.

Q2. What could Arjun do if his product reaches saturation or a decline stage? List 2 financial strategies and 2 business strategies to keep his business relevant.

Q3. Arjun must decide whether to price his bottle affordably or at a premium. What 2 financial factors should he consider before finalizing the price?

Q4. How is the Product Life Cycle different from the Business Life Cycle? Explain in your own words using one example each.

Q5. If Arjun's friend Shruti wants to start a business but is scared of failure, what would you tell her to build a better attitude toward entrepreneurship?

Wealth Wizards Competition 3.0

Date – 8th September, Monday 2025

Time – 10AM – 4PM