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 either: i) 21 days from the date of signing of the insurance application form; ii) 14 days from the issue of the policy; or iii) 5 days from the date the policy is delivered to the insured person or his/her representative, whichever is the latest date.

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