How would your bank account hold up if you or a family member became seriously ill and were unable to work in the next year? Would you be able to pay your monthly mortgage or rent? How about your car payment or credit card bills? Which expenses would you have to cut first?

If you're like most Americans, the honest answers to these questions could be troubling - even if you have adequate health insurance to cover medical expenses and treatment. But carving out enough cash to keep your life going on a daily basis can deplete a savings account or run up credit debt in a hurry.

In fact, a recent survey commissioned by Aflac shows that six in 10 Americans (58 percent) still expect to use money from their savings to pay for health care expenses. Furthermore, a quarter of those polled believe they will have to use credit cards (26 percent) or take out a loan (24 percent) to pay for their health care expenses in a major medical emergency.

It seems as though many of us are just one serious, costly illness away from financial hardship.

The chances of becoming disabled before retirement age are about one in three, according to the Social Security Administration - and not just due to accidents. The primary causes of disability are chronic diseases, such as heart problems, arthritis or cancer, according to a 2007 study for the nonprofit Life and Health Insurance Foundation for Education.

So how should you prepare financially for the unthinkable: a serious illness that taps out your insurance policy and/or forces you or your spouse to leave work indefinitely? It's best to prepare for the worst and hope for the best. Here's how:

Have adequate health insurance - and know what it covers: No matter how healthy you feel today, don't skimp on health care coverage. Know what your insurance will pay for, what it won't and what the maximum coverage amounts are. Many "tap out" at $1 million for some treatments and hospital stays, which in some cases can be reached quickly.

Consider disability insurance: Unless you have major assets to tap, consider disability insurance - either through your employer or independently. Disability insurance provides partial income replacement that protects you from digging into savings, selling your home or declaring bankruptcy.

There are two major types of disability insurance. Short-term coverage covers initial disability, and may provide income for a specified time up to two years, depending on the policy. Long-term insurance starts after short-term coverage ends and helps replace income for a predetermined period, usually two or five years.

For the best protection, be sure your policy replaces at least 60 percent of take-home salary and ideally up to 80 percent, if that level of coverage is affordable.

Consider alternate insurance products: Once you've determined what is and isn't covered under your insurance policy, consider additional insurance products that cover specific illnesses or circumstances.

Cancer and specified disease policies can cover the unexpected costs of expensive chemotherapy and other treatments, hospital confinement or intensive care policies can guard you against "maxing out" your coverage for hospital stays, and accident insurance can help pay for your day-to-day living expenses should you be out of work due to an injury.

Also consider life insurance. It can help pay the bills if a working parent or spouse dies unexpectedly.

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