Advice firm Global Financial Services (GFS) has launched Simple Life, in collaboration with Sovereign.

It offers life, rent or home loan and redundancy cover.

The product has been distributed direct via ASB for the past six months as Easy Life and Living. Premiums are about 40 per cent more expensive than underwritten products.

It can be bought via an online application, soon to be available through the GFS website, or from GFS advisers.

As soon as applicants click "submit", they are guaranteed to be accepted for cover. Any  pre-existing condition or hazardous activity that they have had treatment for or have been involved in in the last five years is excluded.

Industry consultant Darrin Franks, who is working with GFS on the product, said the problem of "not taken up" or NTU policies was a big one for the industry.

He said it was usually because customers did not accept the terms offered by an insurer, the risk was deferred because the underwriters could not make a decision, or the client was simply declined for cover.

He said GFS research estimated up to 40% of applications fell into this category.

"I've long held the view that manufacturers need to be better at manufacturing and this was probably the first example I'd seen in a long time of a manufacturer truly trying to manufacture something that would have a positive outcome rather than just tinkering around the edges."

He said it was also a simpler application process and very quick. The product pays 40% upfront commission and 20% on renewal to advisers.

Franks said the higher premiums would be acceptable to customers who would otherwise have to pay a higher loading from another insurer or who were so time-poor that they did not want to go through a full application process.

He said the product would be available to other advisers once GFS had worked through the pilot process, although there was a cost associated in setting it up and it was likely that it would not be offered to others indiscriminately. "By the end of February we will be looking to offer it to more advisers."