Many super fund members wrongly believe their group life insurance protects them against medical costs, according to a survey by Zurich.

About 11% mistakenly think they are covered for traumatic illness, while 7% believe hospital expenses are included in their policies.

Some 5% think group life covers dental and optical costs, while 6% believe it covers retrenchment.

The study also reveals a lack of awareness about income protection insurance.

Fewer than one-quarter of respondents are aware of the amount they are covered for, and only 15% can correctly identify the waiting period.

About 38% of poll respondents say they could cope financially for just one month before needing to sell assets if personal illness or injury stopped them earning. Almost 80% have never analysed their own life insurance needs.

Zurich Life and Investments Head of Marketing Richard Dunkerley says the study shows significant gaps in consumers’ knowledge of life cover.

“The results further indicate the need for a comprehensive program of literacy regarding life insurance, to raise the general level of education and understanding among Australians.

“There is a duty of care on all participants within the super, advice and insurance sector to do more to educate consumers at every turn.”

Zurich questioned 394 employed Australians for the study.