When taking out a redundancy type of insurance you will typically insure the monthly benefit for the amount that you would normally be paid for example your wage. This benefit will be paid out tax free subject to the underwriters decisions for up to 12 months of the redundancy, illness or accident, you may also want to consider an Income Protection Plan.
This type of insurance is how ever restricted, it typically only covers your mortgage, rent, utility bills; some times it can cover the food bills and the council tax for the property of which you are a resident for. You must how ever be the tenant of a rented property or the owner or mortgager of the property you are occupying.
When applying for this type of insurance you must be careful to account for all of the expenditure that you have going out on a monthly basis other wise if you were to become ill, have an accident or to become redundant you may not be covered for enough.