SCPI via life insurance: the technique explained!
One investment combines the characteristics of property (potential return, risk of capital loss, illiquidity of the underlying asset) with the framework of life insurance. This is what SCPIs (a French non-listed real-estate investment fund, comparable to a REIT) in life insurance offer.
However, like any investment strategy, it has its own advantages and constraints. We will also set out the points to watch and explain how to invest in an SCPI effectively.
Advantages of SCPIs in life insurance
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The tax framework of life insurance
Investing in SCPIs via a life insurance policy offers a particularly attractive tax framework. Unlike a direct investment in SCPIs, the income generated is not subject to the progressive income tax scale. The capital and the interest received are not taxed at all as long as they remain within the policy.
After 8 years, the capital gains arising from payments below €150,000 are taxed at 7.5% (plus 17.2% in social security contributions), and at 12.8% above that threshold (source: BOFiP, taxation subject to change). You also benefit from an annual tax allowance of €4,600 for a single person or €9,200 for a couple.
Moreover, in the event of death, the payments made before the age of 70 enjoy an exemption from inheritance tax up to €152,500. To understand the taxation of life insurance in detail, it is important to seek advice from a professional.
Flexibility
Life insurance brings greater flexibility compared with a direct investment in SCPIs. Liquidity is generally improved relative to a direct investment, without however being guaranteed (the Sapin 2 law). Conversely, resale can prove more complex for SCPIs held directly.
The deferred-entitlement period is markedly shorter within a life insurance policy - generally less than 1 month - compared with 3 to 6 months for SCPIs held directly.
Observed returns
SCPIs stand out for their performance, which is superior to the traditional euro funds of life insurance policies. In 2025, yield SCPIs posted an average rate of 4.91%, far surpassing the 2.5% of euro funds.
This difference in return comes with a higher level of risk: the capital invested in SCPIs is not guaranteed and the value of the units may fluctuate.
Reduced subscription price
Investing in SCPIs via a life insurance policy can prove more economical.
Management companies frequently grant the insurer a discount on the subscription price (generally 2% to 5%), which can partly offset the management fees of the life insurance policy. This can affect the net return of the investment.
Accessibility with low investment amounts
Life insurance democratises access to SCPIs by lowering the investment thresholds. Whereas buying SCPI units directly often requires substantial capital, life insurance makes it possible to invest with more modest amounts.
Property investment becomes accessible to more people thanks to SCPIs in life insurance. This option allows savers, even those with limited means, to diversify their portfolio easily.
The constraints of investing in SCPIs via a life insurance policy
Management fees
One of the main drawbacks of investing in SCPIs via a life insurance policy lies in the layering of fees. On top of the fees inherent to SCPIs (acquisition fees, management fees) come those linked to the life insurance wrapper. These additional fees generally include:
- Entry fees on the policy
- Switching fees
- Annual management fees
The annual management fees on unit-linked funds, of which SCPIs form part, usually range between 0.50% and 1% depending on the policy.
Some insurers reduce the subscription price to offset the additional fees. However, the investor must remain vigilant. It is up to them to work out the real profitability of their SCPI investment within their life insurance policy.
Limited choice of SCPIs
The range of SCPIs available within a life insurance policy is generally more restricted than in a direct investment. Out of the 232 SCPIs on the market recorded at the end of 2025, insurers list only a limited selection. For example:
- Some policies offer only a single SCPI
- The best policies offer between 10 and 31 different SCPIs
This limitation can hinder diversification opportunities and restrict access to the best-performing SCPIs on the market.
No possibility of credit leverage
Unlike a direct investment in SCPIs, it is impossible to subscribe to SCPI units within a life insurance policy using a loan. This constraint deprives the investor of the leverage effect that borrowing can provide. This leverage effect is often used in wealth strategies to optimise the return and benefit from additional tax advantages.
Liquidity and the deferred-entitlement period
Although liquidity is generally better within a life insurance policy, certain aspects may be less advantageous:
- The units do not belong directly to the saver, but to the insurer, who may retain part of the gains generated.
- Some insurers pass on only 85% of the rents to savers, compared with 100% for SCPIs held as a direct investment.
Regarding the deferred-entitlement period, it is generally shorter within a life insurance policy (1 month maximum) than for a direct investment in SCPIs (1 to 5 months). However, this advantage must be weighed against the other constraints mentioned, in particular the potential retention of part of the gains by the insurer.
The tax advantages of SCPIs in life insurance
Taxation
The taxation of SCPIs in life insurance differs significantly from that of conventional property income. Within the life insurance framework, the income generated by SCPIs benefits from the advantageous taxation of life insurance:
- No tax on income as long as it remains within the policy
- After 8 years of holding, capital gains are taxed at 7.5% on withdrawal for payments below €150,000 - and at 12.8% above that.
- An annual tax allowance of €4,600 (€9,200 for a couple) applies to the gains realised
Impact of social security contributions
Despite the tax advantages, social security contributions always apply to the gains of SCPIs in life insurance. These contributions amount to 17.2% and break down as follows:
- 9.2% CSG (France's general social-security contribution)
- 0.5% CRDS (France's social-debt repayment contribution)
- 7.5% solidarity levy
These contributions are applied differently depending on the type of investment option:
- For euro funds: automatic levies at the end of the year on the gains
- For unit-linked funds (including SCPIs): levies only on withdrawals
Social security contributions always apply to the gains. This rule persists even after 8 years of holding. The exemption from income tax does not change this obligation. The tax allowance has no impact on social security contributions.
In which cases is investment within a life insurance policy worthwhile?
For investors seeking optimised taxation
Investing in SCPIs via a life insurance policy can be of interest to savers wishing to optimise their taxation, subject to an analysis of their personal situation. This option proves advantageous for those who plan to hold their investment over the long term, beyond 8 years, in order to fully benefit from the tax advantages of life insurance.
For savers who prioritise liquidity
Investors who are sensitive to liquidity may find that SCPIs in life insurance offer a solution that is generally more flexible than a direct investment. Withdrawals nevertheless remain subject to the insurer's contractual time frames and to any suspension measures (the Sapin 2 law).
For those who prefer simplified management
SCPIs in life insurance may suit, depending on the profile and objectives, savers seeking simplified management of their wealth. The absence of complex tax declarations and the administrative management handled by the insurer offer welcome convenience. This is particularly useful for those who do not wish to get involved in the day-to-day management of their property investment.
Where to subscribe to SCPIs via life insurance
Linxea Spirit 2
Linxea Spirit 2 stands out for its competitive management fees of 0.50% per year. This platform offers a wide choice of SCPIs, allowing optimal diversification of property investment. Linxea Spirit 2 charges neither entry fees nor switching fees, thereby reducing the overall costs for the investor.
However, it should be noted that the fees on property amount to 1.51% on average in 2025, which remains reasonable compared with other options on the market.
BoursoVie
BoursoVie offers management fees of 0.75% per year, slightly higher than Linxea Spirit 2. This life insurance policy offers a selection of SCPIs, although less extensive than some competitors. The absence of entry fees is a significant advantage.
The fees on property are 2.73% on average in 2025, which is a figure not to be overlooked
Fortuneo Vie
Fortuneo Vie displays management fees identical to Boursorama Vie, namely 0.75% per year. It offers several SCPIs, thus providing a certain diversity in investment choices. Like Boursorama Vie, Fortuneo Vie charges no entry fees, a positive point for investors.
Unfortunately, the information on the fees specific to property is not available. Further verification is therefore necessary before committing.
For more details on the fees to compare, consult our guide to life insurance fees.
SCPIs in life insurance: key points to remember
Investing in SCPIs via a life insurance policy combines a specific tax framework, easier access and a risk of capital loss that should be assessed.
With an average distribution rate of 4.91% in 2025 (source: ASPIM/IEIF, past performance not indicative), SCPIs can constitute a diversification tool for investors who accept a risk of capital loss and a long-term horizon.
The choice of policy remains decisive: management fees, the number of SCPIs available and the percentage of rents passed on are the three criteria to compare as a priority before committing.
Regulatory disclaimers: Marketing communication. Investing carries a risk of partial or total capital loss. Past performance is not a reliable indicator of future performance. This article is provided for information and educational purposes only; it does not constitute personalised investment advice, a buy or sell recommendation, or tax advice. The capital guarantee on euro funds is provided by the insurer and depends on its financial strength. In a severe systemic crisis, the French "Sapin 2" law allows withdrawals to be temporarily restricted (liquidity), without affecting the guaranteed capital. Unit-linked funds are not guaranteed and carry a risk of capital loss. Before investing, read the Key Information Document (KID) and, where relevant, consult an authorised adviser. Finary SAS, an investment firm authorised by the ACPR (no. 19283), member of AMAFI. Insurance broker registered with ORIAS (no. 21001279), member of the CNCGP (association approved by the AMF). PSAN registered with the AMF (no. E2022-057).
