3. Business Is The Owner
Similarly to the discussion of 3 people in a policy, issues can arise when the business is the owner. When business owners name themselves as the insured, use the business to own the policy and name a spouse, child, or another business owner as the policy beneficiary there can be negative tax consequences. Make sure to properly structure your policy as well as the beneficiary designation, so you can eliminate this potential headache.
Next mistake to avoid - failure to name a succession owner.