Yes, you can list the premium paid in Box 5 of the 1099R and deduct that from Box 1. The remaining amount will be reported by you in Box 2A as the taxable amount as this is the taxable earnings/interest that needs to be reported as income.
Turbo Tax does not do a good job of identifying you as a beneficiary of a life insurance settlement from a 1099R. If ever examined, use this IRS link as a reference as well as the advice i have given you. Keep a transcript of this conversation and include this in your tax return paperwork.
@davescfg
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