Employer-owned life insurance (EOLI) refers to policies a business owns on employees, with the business as beneficiary. EOLI provides liquidity for key-person loss, buy-sell obligations, or benefit plan funding. Federal rules require written notice to and consent from insured employees and annual reporting on Form 8925. State insurable-interest and consent laws also apply, shaping eligibility and documentation.

Advisors implement EOLI with notice and consent procedures, Form 8925 filing, and documented business purpose. Coverage is aligned to the employee's compensation and impact. Policies are reviewed during audits or financing events to confirm amounts remain reasonable and beneficiaries are correctly recorded.