Final answer:
The insured and the policy owner do not have to be the same person.
Step-by-step explanation:
The statement is true. The insured and the policy owner do not have to be the same person.
When it comes to insurance, the insured is the person whose life or property is being covered by the insurance policy. This means that the insured is the one who will receive the benefits of the policy if an insured event occurs. On the other hand, the policy owner is the person or entity that owns the insurance policy.
For example, parents may take out a life insurance policy on their child's life, where the child is the insured, but the parents are the policy owners. In this case, the child is the insured, but the parents have the ownership and control over the policy.