Another thing I am curious about, but have never really thought about until now, is what happens if your redemption flight is cancelled and you have no choice but to take a flight back home. UA or AC would undoubtedly refund your ticket or do something for you if you had a revenue ticket, but what would Aeroplan do for those that redeemed points? Would they reinstate your points? Partial reinstatement? Nothing?! Normally I wouldn't be so paranoid, but this is the largest single redemption I've ever done (125K!) and since I will most likely be insuranceless would be good to know what my options are if the sh*t were to ever hit the fan.

As far as the cancelled/delayed flight insurance goes, it is only worth a max of $900 ($500 for living expenses; $100 transport; $100 entertainment), so I am not sure that's worth me getting all hot and bothered over.

Baggage insurance is covered by the airline for the same amount and the same reasons. The good news is, I already have an experience submitting a delayed baggage claim with UA, so I know the drill for the that one and can pack accordingly this time! I am really more concerned with weather/air traffic delays, where the airline puts up their hands and says, "I didn't do it!" and you're stuck with nothing...