Vacation Insurance

When planning a vacation from Spain, I try to plan for medical expenses, trip cancellation, and lost luggage in advance. The terms and conditions at https://www.globelink.co.uk/policy-options/spain-travel-insurance.html help me understand the options available to permanent residents. This coverage is especially important when booking expensive flights and hotels in advance. A good policy can mitigate financial risks if plans need to be changed for a valid reason. Do you consider trip cancellation insurance mandatory?