I think the most important bit of advise you can get is that 3 people will have 3 entirely different cruise stories, so take in all the info and then decide what is best for YOU. Here are MY storeis:
We've never experienced smoke as a problem on our balcony (we've had several) and always get a balcony when we can.
We've cruised without cruise insurance, but now only cruise WITH it - just not worth the risk. If you can't afford to miss the cruise, lose all your money and pay for another, then insurance is the way to go. And Thomas is correct, the medical coverage is good enough reason alone. It sounds as though you are covered medically (although you might check on the medical evacuation part....), but what if something happens to either one of you, or your children (god forbid) and you can't go on the cruise? You will not get a refund from the cruiseline and that is where insurance comes in handy.
Enjoy your cruise and your time with your husband!
CarnivalSensation February 2015
Carnival Dream November 2015
Carnival Fascination April 2014
Carnival Elation March 2011
Carnival Imagination Sept 2007
Carnival Sensation Dec 2006
RCI Sovereign of the Seas Sept 2006
Carnival Miracle Sept 2005
Carnival Glory Sept 2004
Carnival Fantasy Jan 2004