If the studio is at least marginally acceptable to you, you might want to take it, buy the insurance and also immediately set up an ongoing search for a larger unit at both Meadow Lake and Glacier Wilderness Lodge. There's another timeshare in Whitefish but the name escapes me right now.
Be absolutely sure to check the box on the ongoing search that says you will consider an exchange that happens under 14 days out from check in. If you are going anyway, it doesn't matter if the better exchange happens last minute.
Last year I had a unit at the timeshare in Whitefish (the one I can't recall) and had an ongoing search set up for MeadowLake and Glacier Wilderness. About 3 weeks before our trip it hit for Glacier Wilderness - 2 bedroom chalet. I was thrilled! My guess is, it was a cancellation by someone.