What is Modified Benefit Funeral Insurance?

Modified Benefit Funeral Insurance is a type of funeral insurance that has a waiting period before it pays the full death benefit. It’s usually offered to people who have serious health conditions and may not qualify for standard life insurance.

Here’s how it works:

• If the person passes away within the first 2–3 years of the policy (depending on the company), the insurance won’t pay the full amount.
  
  

• Instead, it usually refunds the premiums paid, plus a small amount of interest.
  
  

• After the waiting period ends, the full death benefit becomes available.