Why you put this Secuirty in iphone

To acquire AppleCare+ coverage within the first sixty days from purchase, contact Apple Support.

See the How To Buy section here: AppleCare Products - iPhone - Apple

Your concern or issue or limit about the need for an device passcode or Apple ID password is unclear. If you’d like to discuss that here, we’ll need more details.

If you were previously discussing that passcode or password issue with Apple, I’d suggest continuing your conversation with the folks that work for Apple Support.

You are addressing this to another user and not to Apple in this forum.

Apple Support Community Forum

This is Apple Support Community forum, primarily for a user to user interaction for information & idea sharing between users, if need be, extend support on technical know-how in handling Apple products from a more experienced fellow user, This is not the right forum to discuss with Apple Inc.

If you find something is missing on iOS devices, you may provide --> Feedback - iPhone - Apple < here.

Switched Off? Still traceable

Even if the iPhone is switched off it is findable, see the pic below.