What do you mean by you are G-d’s Chosen People?

. . . and how does that then for the people who are not Chosen in terms of believing in G-d, heaven, hell etc? Basically, what does it imply for the rest of us?

I am Muslim so I have no problem accepting G-d chose the Children of Israel over all other nations because it says so in the Quran but what that means in the Muslim perspective is that G-d sent a continuous line of Prophets (sometimes multiple Prophets at once) for the Children of Israel, but didn’t really do so for the rest of the nations of the world. Like every nation was given at least 1 prophet but it wasn’t as frequent as you guys had it. And we also believe every soul was extracted from the back of Prophet Adam and then we all made a covenant with G-d, so basically everyone regardless of location has a responsibility to recognize G-d.

I searched through the sub-reddit and it sounds like what it means is only the actual Children of Israel are Chosen to adhere to the commands G-d revealed in Scripture due to a Covenant. So my question is what about the rest of the world? Does that then technically mean in your perspective if an Atheist realizes G-d is real but decides to still be an Atheist, there’s no blame/sin on him because 0 covenants were made?

Ty