Can someone explain Infinite Banking concept with life insurance?

I was recently introduced to the Infinite Banking concept using whole life insurance. Am still trying to wrap my head around the concept, trying to understand how it can help with retirement.

Can someone explain in plain English how this works?

My understanding is that say if I have a $1M cash value policy when I am age 70. I draw down the cash value via a policy loan. The insurance company would charge me an interest for taking out the loan but at the same time that interest will be partially offset by the dividends I am to receive from the policy. So my net interest exp on the policy will be minimally and at the same time I get to draw down the $1M policy in the form of a policy loan TAX FREE.

Is this the concept behind infinite banking? Some advisors make it sound like my policy cash value will continue to GROW even though I am taking out a policy loan, but I just can't see this is happening for as long as I am charged an interest for taking out the policy loan. The best scenario is that the interest exp will be particially offset by the policy dividends, but no way can the policy continue to grow while I am taking out a policy loan, correct? This is one part about the infinite banking concept I don't understand. No way can the policy cash value continue to grow while there is an outstanding loan against the policy !

submitted by /u/Greenn2022
[comments]