EOLI (employer-owned life insurance) is shorthand for business-owned policies on employees, typically for key-person protection, buy-sell funding, or benefit financing. Federal rules require written notice, employee consent, and annual Form 8925 reporting. Properly structured, EOLI delivers liquidity when a key employee dies, stabilizing operations and meeting contractual obligations without impairing the company's working capital.

Finance teams integrate EOLI into risk management and benefit financing. Advisors confirm notice/consent, reasonable coverage amounts, and Form 8925 filing. During M&A or audits, maintaining clean EOLI files avoids surprises and preserves tax treatment of death benefits.