In this paper, we report on waveguide-type modified uni-traveling-carrier photodiodes (MUTC-PDs) providing a record high output power level for non-resonant photodiodes in the WR3.4 band. Indium phosphide (InP) based waveguide-type 1.55 µm MUTC-PDs have been fabricated and characterized thoroughly. Maximum output powers of -0.6 dBm and -2.7 dBm were achieved at 240 GHz and 280 GHz, respectively. This has been accomplished by an optimized layer structure and doping profile design that takes transient carrier dynamics into account. An energy-balance model has been developed to study and optimize carrier transport at high optical input intensities. The advantageous THz capabilities of the optimized MUTC layer structure are confirmed by experiments revealing a transit time limited cutoff frequency of 249 GHz and a saturation photocurrent beyond 20 mA in the WR3.4 band. The responsivity for a 16 µm long waveguide-type THz MUTC-PD is found to be 0.25 A/W. In addition, bow-tie antenna integrated waveguide-type MUTC-PDs are fabricated and reported to operate up to 0.7 THz above a received power of -40 dBm.