A disability often occurs when you least expect it. If it happens to you, you could find yourself in a shaky financial position without disability insurance coverage according to a new study.

Market researcher Opinauri, Inc., conducted an online survey on behalf of The Hartford that questioned 971 U.S. adults, aged 18-64, during February 2008. The majority of the participants were married with children, working full time and earning between $50,000 and $100,000 annually.

Seventy percent of those who responded to the survey said that they were meeting their expenses with little or nothing left over after paying bills. Eight percent said they were unable to meet current household expenses. But a staggering ninety-five percent admitted that they would need to alter their lifestyle if they lost part of their family’s income for three to six months. However, despite this admission, only half of those polled said they had short- or long-term disability insurance to cover their needs should the unexpected happen.

It's easy to conclude from the survey data that many Americans are trying to make ends meet while juggling significant debt. Walking this kind of tightrope makes them extremely vulnerable if a disability strikes.

Even more disconcerting is that many Americans are facing this risk without any form of income protection because they don’t believe they need it. One in four survey participants said they are more likely to win a lottery than suffer from an injury or illness for three to six months. However, the Social Security Administration paints an entirely different picture. The agency says U.S. workers have a one-in-three chance of becoming disabled at some time during their working life, putting the odds squarely in favor of experiencing a disability over collecting a lottery payout.

Given how real the possibility is that you could experience a disability, it makes sense to investigate your insurance options. The Life and Health Insurance Foundation for Education (LIFE) says that about half of all mid-sized and large employers provide some type of long-term disability income insurance. Even if you are fortunate enough to work for a company that offers group disability coverage, the plan likely only pays 50-60% of your current income in the event of a disability.  If you're like most Americans, a 50-60% income replacement is not going to suffice, so you should explore a supplement to your group policy.

Here are some items to consider if you need to find a private policy to supplement the long-term disability coverage provided by your employer:

· How does the policy define “disability?" - Are you considered disabled if you can’t perform your specific job, or if you can’t perform any job, for which you are qualified by training, experience and education?

·When do payments begin? - Is the waiting period pre-determined, or can you choose the length of time you wait before benefits begin? The longer you can wait for payments to start, the lower your premiums.

· To what extent must you be disabled before benefits begin? - Must you be totally disabled, or can you receive benefits for a limited time if you are partially disabled? In order to receive benefits for a partial disability, must it follow a period of total disability for the same cause?

· Can you receive residual benefits? - If you resume work on a modified schedule because of your disability, does the policy pay you residual benefits to make up the difference in your income?

· How long will you receive benefits? - You can receive benefits for two years, five years, ten years, or until you turn 65. The longer the benefit period, the higher your premiums.

·Does the policy have a “waiver of premium” provision? - Policies containing this provision permit the insured to stop paying premiums if they are disabled for 90 days or more.

Hunting Down a Mortgage in Today's Marketplace

In the shadow of the subprime mortgage crisis, it seems that many lenders are still a little gun-shy. Most lenders have implemented extremely strict requirements and are turning down potential borrowers left and right.

As a result, prospective homebuyers in the U.S. are finding it increasingly difficult to pin down a mortgage. Even consumers with impeccable credit are having a hard time getting approved for a new mortgage or refinancing an existing one.

How can you possibly qualify for a home loan in today’s difficult marketplace? If you want to prove to lenders that you are mortgage-worthy in the current environment, you’ll need to have the following three things:

1. A killer credit score

While a FICO score of 640 might have landed you a mortgage a few years ago, things have changed drastically. If you want to receive a great mortgage rate right now, you’ll probably need a score of 700 or higher.

Borrowers with a score of 720 or higher are in the best position right now. These consumers can qualify for the lowest rates with no extra fees. But even those borrowers with FICO scores somewhere between 700 and 719 may have to pay an extra 0.5% in interest rates or fees. For a $200,000 mortgage, that’s an additional $1,000.

This proves just how important it is to clean up your credit before applying for home loan. If your score goes up by a mere 20 points, it could cost you a pretty penny in rate increases or mortgage fees.

2. A fat down payment

A 5% to 10% down payment may not be nearly enough right now—especially if your credit score is lower than 620. And you might as well forget about 100% financing in today’s market. That’s because mortgage insurers are no longer covering 100% financing loans, and they’ve also cut way back on insuring 95% financing for borrowers with low credit scores.

In today’s environment, you should be prepared to put down at least 20%, especially if you’re sporting a low credit score.

3. Watertight finances

These days, lenders expect borrowers to reveal every dirty detail about their finances—even those with awesome credit. You may be required to share information about your income as well as the exact amount of money you currently have in your bank account. Plus, you may have to prove that you are in a stable job or that you can cover up to six months of living expenses if you were to lose your job.

In the past, borrowers with excellent credit ratings had the option of what’s called a stated-income loan. With these loans, borrowers weren’t required to reveal their income, assets and other financial information. But these types of loans are long gone, even for consumers with super credit scores.

There’s no doubt that securing a home loan in the current environment is challenging. However, it is possible. If you can boost your credit score, save up for a sizeable down payment and prove that you have sound finances, you’re on the right track.

If you can’t make these things happen, you may want to consider an FHA loan. An increasing number of homebuyers are turning back to these loans, which are guaranteed by the government and allow extremely low or no down payments. However, before you make the decision to apply for one of these loans, you may want to discuss your options with a qualified advisor.

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