People researching the Infinite Banking Concept (IBC) with Whole Life insurance often believe there is some magic mechanics to taking a policy loan. In reality, the science of compounding, leverage, and arbitrage is what can maximize your Infinite Banking Strategy.
In fact, even borrowing against your policy to pay premiums can be advantageous if the right math structured into your strategy. The use of cash value lines of credit programs (CVLOCs) can help lower your rate substantially and increase the IRR of your cash flow.
This video explores the math behind some scenarios where full leverage is applied to test the efficiency of the arbitrage under different hypothetical loan interest and growth rate scenarios.