Blissful ignorance sums up Australian's attitude to life insurance, with nearly two-thirds of people drastically underinsured, according to a survey by Axa.

Although Australians compare favourably on a global scale of life insurance penetration, a "she'll be right" attitude is pervasive when insuring against life risks.

And ignorance is no excuse for not taking out life insurance cover - two in three Australians are aware their level of cover is "inadequate or non-existent".

Of the respondents in 12 countries surveyed, Australians were the least concerned about eight out of 10 "life accidents" occurring, including illness, car accidents, financial problems and terrorism.

"Our laid-back culture shines through in this report," clinical psychologist John Cheetham said.

"Much about Australia's carefree attitude to life is admirable, but when it starts to affect our families and our lifestyle it can develop into something that looks more irresponsible and financially hazardous."

Axa GM Financial Protection Michael Rogers says Australians are accumulating more debt without a fallback plan if their financial position sours.