Based on two-grid discretization, a simplified parallel iterative finite element method for the simulation of incompressible Navier-Stokes equations is developed and analyzed. The method is based on a fixed point iteration for the equations on a coarse grid, where a Stokes problem is solved at each iteration. Then, on overlapped local fine grids, corrections are calculated in parallel by solving an Oseen problem in which the fixed convection is given by the coarse grid solution. Error bounds of the approximate solution are derived. Numerical results on examples of known analytical solutions, lid-driven cavity flow and backward-facing step flow are also given to demonstrate the effectiveness of the method.