Definition of "Guaranteed Issue"

In group insurance, this is the maximum amount of insurance that will be issued without the need to provide evidence of insurability. If the group is acceptable, the insurance company dispenses with individual underwriting (For example, a whole life policy may offer a guaranteed amount of ?20,000 for applicants under age 35.) The guaranteed issue feature reduces policy issuing costs and premiums.

The right to purchase insurance without a physical examination or consideration of past or future physical conditions.