In what situation would premiums for a life insurance policy be considered tax-deductible?

Premiums for a life insurance policy are considered tax-deductible when the policy is paid by an employer for an employee's benefit. This situation falls under employee welfare benefits, where the costs associated with group life insurance policies can be deducted as a business expense by the employer. The employer’s payments towards such policies provide a tax advantage, as these premiums are treated as a legitimate business expense.

In personal policies or policies held by a corporation for shareholders or owners, premiums generally do not qualify for tax deductions to the same extent as those provided for employees. While corporations may have some nuanced tax considerations regarding certain types of life insurance, they do not typically deduct premiums in the way that employers providing benefits for employees do. Therefore, the correct answer highlights the specific scenario that allows for tax deductibility related to employer-sponsored life insurance benefits.