Business owners are undecided on how they would like to pay for advice on life insurance, according to a new survey by the MSI Global Alliance of legal and accounting firms.

The survey of more than 570 business-owners found 30% believe financial advisers selling life insurance should receive a commission for their services, as well as an annual renewal fee.

Alternatively, 23% said they would prefer to pay a set-up fee and annual renewal fee through a tax invoice.

StrategyCo director Charles Hornor told insuranceNEWS.com.au the survey results are not designed to say which is the correct method of payment.

“We asked very simple questions about what business-owners expect from their financial adviser,” he said. “What came across strongly was people understood there is a renewal fee paid to the advisers.

“The owners want to see they are getting value from this fee.”

Mr Hornor says management of claims and other post-sale matters were not included in the survey questions.

These services, such as claim management, are part of the debate about the merit of ongoing commission payments to advisers.

“We wanted to see how business owners felt about the relationship with their adviser,” he said.

“It is about testing the waters and is important to recognise this is a gut feeling about the services they buy from an adviser.”

The survey also found 44% of owners prefer to deal direct with an insurer for their life cover, the same as they do for car and house insurance.

In another finding, 64% of owners thought it “important” or “very important” advisers explain the importance of life insurance.