What it covers
Two different problems. Two different protections.
Financial Shock Protection helps with one sudden money emergency. Emergency Fund Gap Coverage is designed for a much bigger problem: a severe drop in household income that leaves you short on essential bills.
Protect the surprise. Protect the gap.
Reserwell is developing two products that work together. One is for a single surprise expense. The other is for the bigger gap that can open up when income stops.
Protect the surprise
Financial Shock Protection
For one qualifying surprise expense.
- $400 or $1,200 fixed cash benefit
- Maximum one benefit per policy year
- Use the approved benefit where your household needs it most
Protect the gap
Emergency Fund Gap Coverage
For when household income from work drops by 60% or more and you are short on essential bills. Up to $30,000 in total benefits under the current proposed design.
Both products are still in development. Benefits, prices, who qualifies, what counts, exclusions, and availability all depend on carrier approval and state rules.
Emergency Fund Gap Coverage in more detail
Financial Shock Protection has its own page. The sections below explain how Emergency Fund Gap Coverage is meant to work.
What activates Emergency Fund Gap Coverage
It starts with a severe drop in household income.
The benefit is based on how short you are on essential bills after counting your income, savings, and other benefits.
Designed for
A drop of 60% or more in household income from work that leaves you short on essential bills. This is subject to final carrier, actuarial, and regulatory approval.
Example household income from work, by month
Emergency Fund Gap Coverage is not designed for
These would not qualify on their own:
- Ordinary car repairs
- HVAC replacement
- Everyday household bills
- Roof replacement
- Medical bills
- Other surprise costs that don’t come with a severe income loss
A surprise expense alone does not qualify for Emergency Fund Gap Coverage.
Some surprise expenses may fall under Financial Shock Protection instead, under its own rules.
The 60% level is part of the current proposed design and is still being tested. Final rules depend on carrier, actuarial, legal, and regulatory review.
Current proposed design
How the proposed coverage would work.
This is the design we are testing now. These are not final terms. They still need final carrier, actuarial, legal, and regulatory approval.
Proposed terms
- Up to $30,000 in total benefits
- To qualify, your household’s income from work must drop by 60% or more
- Coverage must be in place for 90 days before an income loss can qualify
- After a qualifying income loss, there is a 30-day waiting period before benefits begin. Insurance policies may call this an elimination period
- Benefits may cover about 85% of the gap between your essential expenses and the income you still have, up to the policy limit and after other income sources are counted
- Benefits may continue for up to six months as long as you still qualify
- Your household income and financial gap would be checked each month while benefits are being paid
- Other income, such as unemployment benefits, severance, disability benefits, or new wages, may reduce the amount paid
- Benefits go down or stop when income recovers, the gap ends, six months pass, or the $30,000 total is used up
Target price we are testing: about $3 per day for up to $30,000 of coverage. This is not a final price, quote, or rate you can buy today.
Eligibility
Applicants would need a stable work history and proof of household income. They could not already know that a layoff, job loss, or major cut in hours is coming.
These generally would not qualify:
- Quitting your job
- Choosing to work fewer hours
- Retiring
- Choosing a lower-paying job
- Some firings for misconduct
- Losses you already knew about, or should have expected, when you signed up
Final coverage would include limits, exclusions, and rules about other income set with the carrier and regulators. Not available for purchase.
How it differs
A different financial problem deserves a different design.
Emergency Fund Gap Coverage is being designed to work alongside disability insurance, unemployment benefits, and other protection — not replace them.
Disability insurance
Usually replaces income when illness or injury keeps someone from working.
Unemployment benefits
Generally provide government benefits after a qualifying job loss.
Emergency Fund Gap Coverage
Being designed to help with a severe drop in household income while the household is still building its emergency savings.
What starts it: a severe drop in income. What it pays: part of the gap in essential bills left after your other money is counted.
Help shape a new category of household protection.
Reserwell is still testing Financial Shock Protection and Emergency Fund Gap Coverage. Join Early Access to follow our progress and tell us which one interests you most. We plan to start in Utah, if a carrier takes part and all required regulatory approvals are met.