Travel insurance when someone else paid for holiday

[ThisMustBeMyDream]

Google hasn't given me any answers so far, so wondering if anyone knows how travel insurance works when someone else paid for the trip?

I've booked a holiday for my 18 year old son and 17 year old girlfriend. I haven't been able to get a joint policy as they have to live at the same address for that. So if they get individual ones, what happens in the event of cancellation? Will both policies pay out half the holiday cost? And to who?

So confused over this and don't want to get it wrong!

[Sleepy123Head123]

I presume they would need family travel insurance or travel insurance in their own names
They need to be named individuallyon the travel insurance