1. What is meant by a "cooling-off period"? If I have just purchased a life insurance policy but have second thoughts a few days later, can I cancel this policy?

In Hong Kong, for the protection of consumers' interests, a person purchasing a long-term insurance policy (mostly life insurance) is given a cooling-off period to review the terms and conditions of the policy within a reasonable period of time after the purchase.

If the insurance purchaser wants to withdraw within the cooling-off period, he/she has the right to cancel the insurance policy and obtain a full refund of the insurance premium, subject to the market value adjustment (if applicable).

The cooling-off period is 21 days after the delivery of the policy or issue of a Notice (see below) to the policyholder or the policyholder's representative, whichever is the earlier.

The Notice should inform the policyholder of the availability of the policy and the expiry date of the Cooling-off Period.  The Notice should remind the policyholder that he/she has the right to re-think his/her decision to purchase the life insurance product and to obtain a refund of premium paid if the policy is cancelled within the Cooling-off Period.  The Notice should also remind the policyholder to contact the Customer Service Department of the insurer directly (service hotline number should be provided) if he/she does not receive the policy contract within 9 days from the issue date of the Notice.

In all cases, insurance agents are bound to inform their clients about the "cooling-off period" and the right to cancel within that period.