Insuring your retirement savings because your future is worth protecting
Borrow with confidence—and a safety net
Sometimes it makes sense to take a loan from your retirement account and pay yourself back. Unfortunately, retirement loan defaults affect millions of Americans and adversely impact their retirement outcomes. 86% of participants default on their retirement plan loans after leaving their jobs.1 As a result, borrowers lose an average of $300,000 in retirement security.2
Custodia Financial recognized that this crisis is entirely preventable. We offer retirement loan protection, a simple form of loan insurance, that automatically prevents default. More importantly, it allows you to maintain your balance and benefit from decades of compounding and growth.
1 Source: Deloitte, “Loan Leakage,” 2018
2 Source: EBRI, “The Impact of Adding an Automatically Enrolled Loan Protection Program to 401(k) Plans,” 2022
86%
of participants default on their retirement plan loans after leaving their jobs.1
How Retirement Loan ProtectionSM works for you
Retirement Loan ProtectionSM ensures loan payments are made when you can’t. Your retirement plan account could become one of your largest assets, potentially growing to a value far greater than other assets you insure, like your vehicle or even your home. To achieve adequate retirement savings, you must ensure you can repay any loan you borrow from your plan. RLPSM is affordable and effective, costing approximately $2 per month for every $1,000 borrowed if your employer offers RLPSM. If your employer provides it as a plan feature for all employees, there is no cost to you.
Involuntary job loss
If you lose your job, Custodia Financial takes over your loan payments during the months you search for a new job.
Voluntary job change
Should you choose to change jobs, you can continue to repay your loans through Custodia Financial, maintaining your retirement savings without defaulting on your retirement plan loan with your previous employer.
Disability or death
In the unlikely event that you become disabled or pass away, Custodia Financial will restore your retirement plan account in full.
Protect your financial future
We would be happy to talk to your employer about adding this important Retirement Loan Protection benefit.
