When I booked a cruise several years ago, I bought trip insurance that covered my cancellation because of medical reasons and also in the event that the cruise operator went bankrupt. The cruise line went belly up a month before the trip date and the insurance proved to be well worth it. Aside from a nominal deductible and the cost for the insurance, I got reimbursement for the entire trip cost.
When I traveled to Italy for my honeymoon, I also got a policy. In addition to covering for a similar event, I also added riders to cover for medical treatment and cost of transport back to the US. Your regular medical insurance plan typically does not cover you overseas and will not reimburse for medical evacuation.
Additional riders also covered for terrorism-related delays, not an unheard of possibility in this day and age. And since my wife and I also have parents and a grandparent with medial issues, we opted for an additional rider that would cover the cost of unscheduled transport back to the States or in case we needed to cancel before departure resulting from a medical emergency.
The cost is cheap for the peace of mind. But I think that you may find better terms with other carriers. Don’t simply accept the option offered through the company arranging the travel.