An employer-owned life insurance notice is the written disclosure to an employee that the employer intends to insure their life, the coverage amount, and that the employer will be beneficiary. The notice is paired with written consent and retained in records. Proper notice is a prerequisite to favorable federal tax treatment of death benefits under EDLI rules.

During onboarding, HR delivers EOLI notices and obtains signed consents before policy issue. Advisors store copies and provide them during carrier audits or due diligence. Clear notices reduce disputes with families and protect the company's right to receive tax-free proceeds upon an employee's death.