Only 42% of Aussies surveyed said they understand their life insurance policy

It's no secret that many Australians are woefully underinsured and recent reforms to superannuation laws have only made the problem worse.

A recent survey of 1500 Australians by MLC Life Insurance found that just 25% claim understand what they're covered for under their super-based life insurance policy. Even fewer (21%) know what their premiums are.

Despite the clear importance that respondents placed on their life insurance, it seems that many are confused as to which cover is right for them or how much they should pay for it.

This lack of understanding is a serious problem as it means many people may not be adequately covered in the event of an accident or illness.

With premiums rising steadily, it's more important than ever to make sure you're getting value for money.