In a variable life insurance policy, which item may NOT be deducted from premium payments or cash value?

In a variable life insurance policy, one key aspect is the treatment of various costs and fees related to the policy. Among the options given, federal premium taxes are not typically deductible from premium payments or cash value. Variable life insurance policies often include fees such as state premium taxes, management fees, and administrative costs, all of which can be directly linked to the management of the policy and its underlying investment products.

The rationale for this is that federal premium taxes are not imposed on life insurance premiums in the same manner as state premium taxes. Therefore, while state and other specific administrative fees can be deducted as part of the operational costs of maintaining the policy, federal taxes do not fall into this category. Federal tax implications usually come into play during tax filing rather than influencing the cash value of the policy directly.