The Corporate Redemption is likely the most common type of Buy-Sell Agreement. The reason is that number one is that the Partners/Shareholders are protected through a corporate-owned policy. Secondly, it can cover a larger number of partners/shareholders. 

In most cases, the remaining partner/shareholders are NOT interested in having the deceased partner/shareholder’s family to be involved in the business. Therefore, life insurance is frequently used by private companies to fund the Buy-Sell Agreement that is triggered upon the demise of a partner/shareholder. Using corporate owned life insurance to fund the buyout helps ensures the continuity of the business while providing cash to the deceased’s beneficiaries.