Loan Eraser

Anyone know what the premiums are on this?  I just cant imagine they are affordable?

https://www.loaneraser.com/individuals/

Is it really insurance, or is some type of bridge loan arrangement?

According to the website austin3515 points to, it is insurance:

"Retirement Loan Eraser (RLE) is smart insurance protection that repays your 401(k) plan loan if you default on your payments due to involuntary job loss."

https://www.loaneraser.com/faqs/

Also, the website's privacy notice discloses sharing a customer's information with "insurance firms with which we have a relationship[.]"

Not familiar with anything having to do with participant loans (and I have not looked at the link myself), but I can't help wondering

• Who gets to determine whether calling it "smart" insurance protection is accurate?  The person in line to be paid the commission?  The insurance company standing to make a profit on the coverage?
• When they say "involuntary job loss", does that term include termination for cause?  If so, there could be a significant moral hazard here for someone looking to get someone else to pay off their 401(k) loan. If not, the coverage could turn out to be surprisingly non-comprehensive.
• If one is able to collect on such a policy, would the amount provided to pay off the loan be taxable to the participant?  If so, is that made clear in the sales materials?  If you have to pay taxes on the amount paid by the insurance company to settle the 401(k) loan, what is the advantage over just defaulting?  Avoidance of the 10% excise tax if under 59 1/2?
• As Austin3515 wondered, how expensive is this coverage?

I heard a presentation on this at a conference of retirement-plans practitioners.  While I was not fully persuaded by the reasoning, it was clear that the designers had thoughtfully considered relevant law and tax treatment.

If one wants the details, the Custodia Financial have more analysis than is shown on the website.

And of course one would read the insurance contract.