Policy mechanics

Modified Death Benefit

A modified death benefit limits the payout during an early period, often the first two or three years, if the insured dies of natural causes. After the period ends, the full face amount is paid.

Why it matters

Modified plans sit between fully underwritten coverage and guaranteed issue. They often serve people with some health issues who still pass a short set of questions. The early payout is commonly a return of premiums plus interest, or a set percentage of the face amount. The exact rule depends on the carrier and the state, so read the policy and the outline of coverage.

Source: naic.org

Read next, for familiesFinal expense insurance: what it pays for, what it costs, and who it fits

Where we use this term

Start your climb.

Tell us where you are today and request a call about licensing, training and the calls.

Shopping for coverage instead? Get a quote