Why should I pay the $80k into the policy in the first place? The average return is less than 6%, and I have to pay 5% interest to get it back. My net earnings on the $80k are less than 1% by putting it into the policy then borrowing it back. Are you going to argue that’s wrong?
Your question about what I can earn on the $80k borrowed shows you don’t get it. I don’t need to put the $80k into your policy just to get it back to invest. It’s my $80k. I can go invest it however I want. All your policy does if offer the extra less than 1% return by putting the money in the policy then borrowing it back. I’m supposed to get excited about a less than 1% return? Who cares if it’s tax free? I can get over 6% on tax free muni bonds.
It’s like you think I can’t invest the $80k myself without first running it through the insurance policy. The policy can’t take credit for how I invest the $80k, since I can do it without the policy.
Everyone is silent on this, since they realize what a scam it is. They just ignore you.