why would you assume that? As noted upthread, if you want to travel from London to tlv, I would have thought your option would be to do so on LY. Flight are busy but there is space although not every day. If you can’t be flown on the same day, you should be eligible for the one or two nights accommodation you’ll need until there is space. If you prefer not to return to Israel you can of course get a refund for the cancelled flight but then won’t get additional duty of care.

As for travel insurance, it would pay if cancelling had a cost (eg non refundable ticket or non ref hotels in Israel) but not for hotels in London.