What am I missing about IBC

I’m confused why the infinite bank concept is getting a lot of hate.

From my understanding, a normal person takes 5-10 years to build up a desirable cash value for their whole/permanent life insurance policy. Once you have a desirable cash value, you borrow against your cash value, meaning you don’t actually take any money out of your policy. The insurance company loans you money and uses the cash value of your policy as collateral. Plus the interest rate of these loans are usually 4-8% which is often lower than private loans. This is what makes this strategy great because the money that you have put into your policy through your monthly payments is continuing to accrue interest at the full amount since you didn’t have to dip into it.

You then use this loan to buy assets that MAKE YOU money like real-estate and investments, or pay off debt which frees up monthly income for you. You then use this new money to pay back the loan your insurance provider gave you. All the while, the cash value of your policy has been accruing interest at the full value because no one actually touched it.

Once you’ve reached the cash value limit that most policies have, you simply buy another policy and repeat the steps. Its not an investment strategy, it’s a beefed up savings account