Cushion provides Private Supplemental Involuntary Unemployment Insurance (PSIUI) tailored for modern professionals. If you experience a qualifying, no-fault layoff or corporate reduction in force (RIF), Cushion pays a fixed monthly cash benefit directly to you to help bridge the financial gap between statutory state unemployment benefits and your actual living expenses.
Why Cushion Exists: The Income Protection Gap
Statutory State Unemployment Insurance (UI) programs are designed as modest baseline safety nets. In most states, weekly benefits are capped at approximately $200 to $550 per week (e.g., California caps benefits at $450/week, while Florida caps benefits at $275/week).
For higher-earning professionals, statutory state UI replaces less than 15% of regular monthly income. When a sudden career interruption occurs, high fixed obligations—such as mortgages, childcare, car payments, and student loans—can lead to immediate cash-flow strain. Cushion provides supplemental coverage to help protect your financial stability during career transitions.
Core Policy Mechanics
Fixed Monthly Indemnity: Your benefit is established at policy binding as a fixed monthly payout (up to a policy maximum of $10,000 per month).
Target Replacement Rate: You choose an aggregate target replacement rate of 40%, 50%, or 60% of your verified gross monthly base salary.
Custom Payout Durations: You select your coverage duration - 2, 3, 4, or 5 months of benefit payments (subject to state benefit alignments).
Direct, Unencumbered Liquidity: Payouts are deposited directly into your bank account. You retain complete discretion over how funds are spent to maintain your household obligations.
Individual Portability: Your policy belongs to you, not your employer. You can carry your coverage across qualifying career moves using our Portability Protocol.
Key Requirements to Keep in Mind
The 120-Day Vesting Period: Newly bound policies have a mandatory 120-calendar-day waiting period starting from your Policy Effective Date. No benefits are payable if your job loss occurs on or before Day 120.
The 28-Day Elimination Period: Following an approved job loss, there is a 28-day time deductible starting on your state UI effective claim date before benefit accrual begins.
The State UI Piggyback Rule: Cushion coordinates directly with state unemployment programs. You must apply for, be approved for, and actively receive statutory state unemployment benefits to activate your Cushion benefits.