Guaranteed issue refers to insurance products that are issued without medical underwriting — the applicant is guaranteed coverage regardless of their health status. In group insurance, guaranteed issue is common for employer-sponsored life and disability plans (up to a specified amount). In individual life insurance, guaranteed issue products are typically whole life policies with lower face amounts ($5K-$50K), higher premiums, and a graded death benefit (full benefit not payable in the first 2-3 years). Guaranteed issue enrollment periods in group plans provide employees the opportunity to obtain coverage without evidence of insurability, making them valuable for employees with health conditions that would otherwise prevent individual coverage.
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