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Integrating its SCPI shares into a life insurance contract, good or bad idea?

Integrating its SCPI shares into a life insurance contract, good or bad idea?

You have heard that housing SCPI shares in a life insurance contract is advantageous. You do not understand how this is beneficial. Here is some information about it to help you decide.

Are there any advantages of placing your SCPI shares in a life insurance contract?

There are many advantages to integrating your shares of SCPI in a life insurance contract. Already, you will boost the performance of your life insurance policy. But, so that you better understand how, consider the following figures. In 2019, funds in euros returned 1,5% while SCPIs returned 4,40%. It is easy to deduce that it is advantageous to replace the fund in euros of your life insurance contract by SCPI. The performance will be better.

But housing your SCPI shares in your life insurance contract has other advantages, particularly in terms of tax. Indeed, your SCPI will benefit from the advantageous taxation of your insurance contract. In general, the taxation of life insurance is attractive. In the event of withdrawal, after 8 years of ownership, the capital gains are taxed at only 7,5%.

In addition, on the gains made, you benefit from an allowance of 4 euros per year. Then, in the event of death, payments of less than 600 euros made before the age of 152 are exempt from inheritance tax. However, note that some SCPIs benefit from reduced taxation. This is the case of European SCPIs with which you enjoy a partial exemption on the share of foreign assets.

For their part, SCPIs in residential real estate give you the right to tax measures, the Pinel law, the Malraux, Denormandie devices, etc.

Are you going to integrate your SCPI shares into a life insurance contract?

The various advantages of housing your SCPI shares in your life insurance contract have been explained above. Then, there is yet another financial advantage, that of the absence of a period of enjoyment. What does that mean ? Normally, if you buy SCPI shares directly, you only receive the first income long after. In general, it is only after 3 to 6 months that you can expect to receive your income. This is what is called the “period of enjoyment”. On the other hand, if your shares are subscribed via your insurance contract, there is no waiting, you immediately receive your income.

These are all arguments in favor of including your SCPI shares in your contract. However, here is some information to know about it. For example, not all SCPIs are accessible via a life insurance contract. Of the approximately 200 existing SCPIs, there are only about twenty that are. In principle, these are SCPIs in professional and commercial premises, warehouses, etc. In addition, the amount of SCPI that can be placed in the contract is limited by insurance companies. On average, a maximum of 75% can be the subject of such an investment.

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