Australians do not consider life insurance a priority and severely underestimate the cost of being off work with illness or injury, according to research by Commonwealth Bank’s insurance arm CommInsure.

Many respondents rank Christmas as more important than regular “health checks” on their insurance, the survey finds.

“People’s lives and circumstances change so regularly, an annual review is absolutely necessary,” CommInsure GM Retail Advice Tim Browne told insuranceNEWS.com.au.

The survey shows most Australians could support themselves for only about six months after a serious illness or injury that affects their ability to work.

While 85% of respondents cite savings as a source of income support, more than 50% have “severely underestimated” the cost of treating serious injuries.

About 49% say their insurance covers mortgage payments if they cannot work but the rest would be “under pressure” to make the payments.

Mr Browne says many Australians have a false sense of security about wealth protection and believe they can “turn to support networks such as savings or the Government to cover the costs of unforeseen circumstances”.

The survey finds accidents such as those involving home renovation and sports are among the most common causes of hospitalisation, often leaving Australians unfit to work for more than three months.

Mr Browne says people must consider “how long they will be able to make ends meet without adequate levels of coverage”.

Overall, 60.3% of respondents have life insurance, with 41.3% covered through their super fund only.

“While insurance provided within super is a good start, it’s important to continually assess your insurance needs, taking into account the worst-case scenario to ensure adequate protection in the event of a serious injury or illness,” Mr Browne said.

CommInsure commissioned CoreData to conduct the survey in August, questioning 1078 participants aged 18 and above.