When you're laid off, your company may offer you a severance package. This is essentially a bundle of pay and benefits provided to you upon your departure. It's not legally required in most cases, but many companies offer it as a gesture of goodwill and to ease the transition.

A typical package includes a lump sum or several weeks of your regular pay, information about your final paycheck, and details on unused vacation time payout. It might also cover a portion of your health insurance premiums for a period of time. Carefully read every document you receive.

Don't feel pressured to sign anything immediately. You usually have a window of time to review the agreement. This is your chance to see if the terms are fair and if there's any room for negotiation. Are they calculating your pay correctly? What about sales commissions or bonuses you were expecting? If you believe the offer is too low or something is missing, you can ask for more. You could request additional weeks of pay, extended health coverage, or even outplacement services to help you find your next job. The worst they can say is no.

One of your first and most important tasks is to file for unemployment benefits. This is a state-run program designed to provide temporary income support to people who have lost their jobs through no fault of their own. The amount you receive and for how long varies by state.

It's crucial to apply as soon as possible, as there's often a waiting period before you start receiving payments. Don't delay. The process usually involves providing details about your employment history and the circumstances of your layoff. You can typically file online through your state's department of labor website.

Losing your job usually means losing your employer-sponsored health insurance, which can be a major source of stress. You have a few options to stay covered.

First, there's COBRA (Consolidated Omnibus Budget Reconciliation Act). This federal law allows you to continue your former employer's health plan for a limited time, typically up to 18 months. The catch is that you have to pay the full premium yourself, including the portion your employer used to cover, plus an administrative fee. It can be expensive, but it offers continuity of care.

Another option is to purchase a new plan through the Health Insurance Marketplace created by the Affordable Care Act (ACA). Losing your job qualifies as a "special enrollment period," allowing you to sign up for a plan outside the normal open enrollment window. Depending on your income, you may qualify for subsidies that make these plans more affordable than COBRA.

Finally, check if you're eligible for Medicaid, a government program that provides health coverage to low-income individuals and families. Eligibility rules vary by state, so you'll need to check with your state's Medicaid agency.

Now, let's review these critical first steps.

Taking these immediate steps can create a financial cushion, giving you the breathing room you need to focus on your next move.