There are situations when time and unforeseen occurrences may override your trip and then you are forced to cancel it. This may actually happen after you have done so much or even everything to enable the trip. You may have bought your ticket, you may have booked room for your accommodation and paid for it, some of these expenses are usually non refundable even after you make cancellations.
Of course, it may not be your wish that you get to cancel a trip but it may be the only last option you have. The reasons can be many including extreme weather conditions at your destination and you would not wish to take the risk. So, you would find the cancellation very appropriate. You need to know that if you had made arrangements, you would not lose anything.
There is the trip cancellation insurance which would take care of such situations. You will be able to receive reimbursement and refund for all the expenses that you are not able to get back. Sometimes there are even penalties for interruption of trips and these would be covered by the same insurance.
Thus, you would always be wise when you opt for travel insurance plan that also includes the trip cancellation privileges. It is not always automatic that the insurance would come with the benefit and so you must double check.