Alan arranged a Personal Pension Plan over the internet. What is the legal cooling-off period within which Alan can cancel the policy?

• A. 10 days.
• B. 14 days.
• C. 21 days.
• D. 30 days.

Answer: (D)

The key idea here is the cooling-off period for a financial product bought at a distance, like online. When you arrange a personal pension plan over the internet, you’re given a set window to rethink the decision and cancel without penalties. The period for this type of distance purchase is 30 days. If cancellation happens within this 30-day window, the policy can be canceled and any premiums paid should be refunded in full, with no penalties imposed. After the 30 days, you may face charges or restrictions as defined by the policy terms.

The other shorter time frames (10, 14, or 21 days) do not apply to this scenario, as the standard protection for online pension arrangements is the 30-day window.