SCPI in life insurance: advantages and disadvantages

SCPI in life insurance: what are the advantages?

The investor who opts for the SCPI - real estate savings solution - in his life insurance obeys a logic of diversification of his contract. As the yield of the euro fund of life insurance has decreased from year to year, SCPIs -available in the form of units of account in life insurance- represent a good alternative, because of their yield potential.

Another advantage of holding SCPI units in a life insurance policy is that you can take advantage of the tax benefits of the latter. The gains generated are not considered as real estate income as it is the case with a direct holding. SCPIs benefit from the same tax regime as other life insurance investments, i.e. taxation that applies only to withdrawals and is reduced after eight years.

Finally, within a life insurance policy, SCPI units can be resold within a maximum of two months: the insurer or the bank where the life insurance policy is opened ensures their liquidity in principle.

SCPI in life insurance: what are the drawbacks?

By subscribing to SCPI units via a life insurance policy, the investor only has access to the SCPIs available in the chosen policy, which limits the choice and possible diversification of this solution. In addition, the acquisition of shares on credit or in dismemberment of ownership is not possible in life insurance, unlike the direct purchase.

Also, within the framework of the life insurance, the establishment publishing the contract is the owner of the shares of SCPI. It will therefore be able to receive a part of the gains generated by the SCPI. In addition to that, there are the costs. Indeed, to those inherent to the contract itself (management fees, arbitration fees...), you have to add those linked to the SCPI.

Finally, SCPIs present a risk of capital loss and income is not guaranteed, even when they are held in life insurance contracts.  

How to subscribe to an SCPI in life insurance?

If you already have a life insurance policy, simply contact your dedicated advisor who will suggest an SCPI available within your current policy. If the desired SCPI is not available in the contract, it is possible to open another contract elsewhere, taking care to ensure that the securities are accessible in the offer. Otherwise, you can always subscribe directly.

As with any real estate investment, there is a risk of capital loss due to changes in the real estate market and currency exchange rates. Income is not guaranteed and may rise or fall depending on the performance of the fund. Past performance is no guarantee of future performance.