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


The Cooling-off Notice should inform the policyholder of the availability of the policy and the expiry date of the Cooling-off Period.  The Cooling-off Notice should remind the policyholder that he/she has the right to re-consider 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 Cooling-off 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 calendar 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.