A redundancy insurance policy, like other forms of income protection insurance, is paid for with monthly payments and pays out if you are laid off unwillingly. You may compare redundancy insurance quotes and benefits to discover the best coverage for your lifestyle and circumstances by comparing redundancy insurance quotes and benefits. Most insurance compensates you financially for up to 12 months after you've been laid off. If you're laid off, you'll need to give your insurer with copies of your employer's paperwork to verify your claim. There is generally a 30-day ‘wait' period before you get your first tax-free monthly payment, however payments will be backdated to the day you were laid off if you have chosen a ‘back to day one' arrangement.