What does "guaranteed issue" mean in life insurance?

"Guaranteed issue" in life insurance refers to a policy that is available to individuals without the requirement of medical underwriting. This means that applicants cannot be denied coverage based on their health status or pre-existing conditions, making it accessible to a broader range of people, including those who may have had difficulty obtaining insurance due to their health issues. This approach helps ensure that even those who are at higher risk can secure coverage, thus enhancing financial protection for individuals who might otherwise go uninsured.

The nature of guaranteed issue policies often comes with certain stipulations, such as limited coverage amounts and may include a waiting period for full benefits. However, the key element is that no health questions or medical exams are needed to obtain the insurance, which significantly simplifies the process for obtaining life insurance.