We are departing for a Western Carribean in two weeks, and like many others are doing some of the usual tricks to save a few $$ where we can. Another couple we know decided to join us, and unfortuantely decided to go as cheap as possible, thus declining trip cancellation insurance of any type. Sure enough there was a death in their family today, and they must depart overseas at once. He says that they travel a lot and the insurance costs add up over time, but I say being out $4000 will buy a lot of insurance.
I guess what I am saying is that it is fine to cut corners where you can, but really think twice when it comes to trip insurance. Speaking from experience, I was knocked down with a flu the day of departure in 1999. Took the doctors advice and bowed out of a $5000 trip. In the end I recovered about 90% of the funds, sure am glad we did not go as I was flat on my back for 8 days.