I got an email from PayPal which looks like this:

It has my name, check.
The link looks correct, check.
I used an external link to PayPal as a precaution. After logging in I couldn't find the "Notifications" section on the top right side of the page.
I searched "new policy updates" within PayPal and came up with this:

NEVER, EVER click on a link in an email no matter how good it looks.