Allianz Australia is spearheading the charge towards simplified life insurance products, stripping its product disclosure statements (PDSs) to just seven pages and promising online or phone cover within 12 minutes.

Allianz's latest life insurance product has been launched online to target the time-poor consumer with little or no understanding of life risk coverage.

The product is run under as a pilot program with Medibank Private, the Federal Government's health insurance provider, to sell its new life insurance product through Allianz in retail outlets across NSW.

Allianz Life Insurance CEO Jonathan Poole says high commissions and complicated policy wordings are barriers to people taking out life insurance.

"We know six in 10 people with dependant children simply do not have enough life insurance to look after their families if something happened to them," he said.

"We also know that superannuation is only providing people with 20% of the life insurance they need."

Mr Poole says cover can be arranged online or over the phone at rates up to 30% less than the rest of the market. It includes a $1.25 million sum insured, critical illness cover, "permanently unable to work" cover and full underwritten on-the-spot cover.