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Travel Insurance

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I am shopping around for travel insurance for myself, and my parents as we will be visiting family in Europe this summer. It has been quite the task! My parents are going together and I will meet them there 2 weeks later. My dad will return after 6 weeks (44 days), and I will continue traveling with my mom. We will be gone for about 2.5 months. My mom is 64.
I used Kanetix, RBC, Travel Guard & PC travel insurance online quotes. I also looked at credit card travel insurance but know that it's very limited and may not cover persons age 60 and over. Some of the quotes were quite high. One of the quotes for my dad was over $700 and for my mom (I believe it was RBC), was over $1200!

Just a few stats:
My father is 66, in good health.
He had a stress test done a few years ago in order to renew his license. Most of the medical questionnaire's ask if there is any heart condition and I answered "NO" as there is/wasn't any issues. However, I'm wondering whether I should answer "YES" since he had a stress test, which may be seen as 'treatment' although there is no category for 'stress test'. I don't know what else to refer to it as.

My mom is 64 and takes medication for high blood pressure even though it's under control. I did answer "Yes" in the medical questionnaire when asked if she had high blood pressure.

In your opinion, besides medical insurance, what other travel insurance would you recommend getting for my parents? I usually opt for "All Inclusive" but don't know if I really need this package for both of my parents.

Since we will be staying mostly with family, with only a few stays @ B&B's (not booked yet), it is important to get cancellation insurance?

I traveled solo to Europe several years ago and purchased "All Inclusive" insurance. My departure flight was delayed due to mechanical problems so we spent the night in a hotel, which the airline took care of. We departed the following day. On my return to Toronto, I learned that one of my suitcases was left in Rome. I filled out a form at the airport, and the airline returned it to me the next evening. However, the 'gentleman' who brought it, or should I say 'dragged it' to my door, broke the handle and wheel off. He claimed that it was already broken when he picked it up. I contacted the airline and they sent me a cheque for the damage. The only time I really needed to use my travel insurance was for medical - dental claim. Even then I didn't file the claim b/c a family friend (dentist) performed the treatment. I'm debating whether I really need to get "All Inclusive" insurance again or whether getting medical insurance would suffice. I'm 40.

I forgot to mention that my mom maintained her Italian citizenship. My dad would have to reapply. I have dual citizenship (Canadian/Italian) and will be traveling with my Italian passport. From my understanding, and correct me if I'm wrong, my mother and I would receive medical attention if required. If this is the case, would my mother and I still need to apply for medical travel insurance?
I appreciate your helpful feedback.

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