Understanding how Cushion functions—from your initial application to monthly premium payments and filing a claim—ensures you know exactly what to expect at every step.
Step 1: Application & Verification
Cushion uses direct data sources to eliminate paperwork and manual review.
Connect Payroll: You authenticate with your employer's payroll platform via a secure, read-only API. This verifies your employment and income details without notifying your employer.
Review Eligibility: The system instantly validates core eligibility requirements in real time.
Confirm Warranties: You confirm baseline eligibility attestations and warranties.
Step 2: Choosing Your Coverage Tier & Binding
Select Your Replacement Rate: Choose between up to 40%, 50%, or 60% of your gross base monthly salary.
Select Benefit Duration: Choose how many months you want coverage to last (2, 3, 4, or 5 months - subject to state statutory benefit alignments).
Calculate the Benefit Gap: Cushion calculates your monthly benefit.
Checkout & Effective Date: Coverage typically begins at 12:01 AM the next calendar day.
Step 3: The 120-Day Vesting Window
To ensure risk pool stability, every new policy requires a 120-calendar-day Vesting Period:
Days 1 through 120: Your policy is active, but you are not yet eligible to file a claim. If you receive a layoff notice or your employment terminates on or before Day 120, the event is excluded from coverage.
Day 121 and Beyond: Your policy is fully vested. Any subsequent covered involuntary termination qualifies for claim benefits.
Step 4: Claims & Payout Lifecycle
If you experience an involuntary, no-fault layoff after your 120-day vesting period, follow this process:
File for State UI: Immediately submit your unemployment claim with your state Department of Labor.
Submit First Notice of Loss (FNOL): Submit your claim online within 28 days of your separation date to start your claim. Upload your separation notice and provide your state UI filing confirmation.
The 28-Day Elimination Period: A 28-day time deductible runs from your official state claim effective date. Benefits do not accrue during this 4-week period.
State Approval (Proof of Loss): Once your state issues an approved Non-Monetary Determination Letter, upload it to your portal.
Receive Payouts: Benefit disbursements begin on approximately Day 42 (covering the first 14 payable days in arrears following the 28-day elimination period). Payouts continue bi-weekly as long as you re-certify and remain eligible for state UI, up to your selected maximum duration.