In most cases, a graded burial policy is a type of modified whole life insurance plan with a waiting period of two years. That means death in the first 24 months will not result in a claim payout. The insurer only refunds your premiums. However, some burial insurance companies use “graded” to describe a partial coverage policy. With those, the insurer would pay out a portion of the death benefit if you die in the first two years. It’s not just a refund of your money. If you’re being offered a graded policy, be sure to ask questions and review your policy carefully so you fully understand how it works.