Allianz is bypassing advisers by offering up to $1.25 million of life insurance online or over the phone in 12 minutes.

Allianz Life Plan will offer life cover, critical illness cover, and permanently-unable to-work cover, with no medicals or blood tests.

According to Allianz Australia Life Insurance executive officer Jonathan Poole, it is the first time that the last two categories have been offered as an online option by an insurance provider.

"The bottom line for us is that a large proportion of Australians living out at Parramatta, Penrith or Bankstown earning $40,000 to $65,000 a year . are not going to use a financial planner or risk adviser," Poole said.

"They probably aren't going to know who to ring anyway and if they did the risk adviser isn't going to be able to generate enough income to warrant seeing that person and meet their needs.

"We'd like to see ourselves as democratising insurance needs in Australia."

Allianz estimates that over the life of a policy, cover will be 35 per cent less than other online providers, and 20 to 25 per cent less than products available through insurance advisers. 

According to Allianz Australia Life national manager business development Meredith Barnes, the group is able to pass savings from commissions to advisers and underwriting onto consumers.

"Our underwriting model is effectively a lot cheaper because we do it electronically," Barnes said.

Coupled with the speed of process is the provision of a seven-page product disclosure statement (PDS), which Poole highlighted would be written in plain English.

"We have a broad range of definitions in our PDS. This is not a cut down exclusionary product . It will stand up against any other life coverage out there," Poole said.