@Wolverine Thank you for your thoughtful perspective.
Yes, we’re taking this as a learning experience, as we must. Sadly, my wife mentioned today that she’s looking for a job. It’s not a bad thing in itself, but it’s clear she feels the need to contribute more towards our mortgage, which is disheartening. However, I believe things will work out.
We sent the cancellation documents to Generali yesterday via email and received confirmation that they’ve been received. It’s indeed a relief, and we’re determined not to deal with them again. 
Thank you all for your supportive messages @dbu and @ma0 .
We’re now focusing on better budget management. As a software engineer with external projects, I’m confident we’ll manage, even if it means adjusting our timeline slightly. We’re committed to making it work, even if it’s a few months later than planned.
Thank you all for your valuable messages. I’ve learned a lot from this forum, and I continue reading and asking new questions. 