I agree with the post above...
trip insurance is offered to prevent just this type of situation. However, when my dad had a heart attack the day before we were supposed to go last December, I called and was treated VERY kindly regarding the reservation. This was a trip for extended family, scheduled on my parents' membership, but I am listed on the account as well for making arrangements. I explained the situation, and the cast member not only took care of
DVC cancellations, but she called the kennels to cancel the arrangements we had made for pets, took care of somehow refunding
MVMCP tickets, and canceled the dining reservations as well. Granted, I'm sure she could hear hospital noise and crying in the background when I called, so it was pretty obvious I was telling her the straight story... but I was still surprised at how very thoughtful they were. The points were returned to my parents account.