premium

American  

[pree-mee-uhm] / ˈpri mi əm /

noun

1. a prize, bonus, or award given as an inducement, as to purchase products, enter competitions initiated by business interests, etc.

2. a bonus, gift, or sum additional to price, wages, interest, or the like.

   Synonyms:

   reward

3. Insurance. the amount paid or to be paid by the policyholder for coverage under the contract, usually in periodic installments.

4. Economics. the excess value of one form of money over another of the same nominal value.

5. a sum above the nominal or par value of a thing.

6. the amount paid to the lender of stock by the borrower, typically a short seller.

7. the amount the buyer of a call or put option pays to the seller, quoted in dollars per share of stock.

8. a fee paid for instruction in a trade or profession.

9. a sum additional to the interest paid for the loan of money.

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adjective

1. of exceptional quality or greater value than others of its kind; superior.

   a wine made of premium grapes.

2. of higher price or cost.

3. of or relating to premiums.

   to work in premium sales.

idioms

1. at a premium,

   1. at an unusually high price.

   2. in short supply; in demand.

      Housing in that area is at a premium.

premium British  

/ ˈpriːmɪəm /

noun

1. an amount paid in addition to a standard rate, price, wage, etc; bonus

2. the amount paid or payable, usually in regular instalments, for an insurance policy

3. the amount above nominal or par value at which something sells

4. 1. an offer of something free or at a specially reduced price as an inducement to buy a commodity or service

   2. ( as modifier )

      a premium offer

5. a prize given to the winner of a competition; award

6. an amount sometimes charged for a loan of money in addition to the interest

7. great value or regard

   to put a premium on someone's services

8. a fee, now rarely required, for instruction or apprenticeship in a profession or trade

9. 1. in great demand or of high value, usually because of scarcity

   2. above par

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premium More Idioms  

1. see at a premium; put a premium on.

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Synonym Usage

See bonus.

Other Word Forms

Derived Forms

• superpremium
  adjective
• nonpremium
  noun

Etymology

Origin of premium

First recorded in 1595–1605, premium is from the Latin word praemium profit, reward

Explanation

Something that's premium is much better than average — it's excellent, in fact. A premium seat at a rock concert is right up front, with a great view of the stage. When premium is a noun, it means the money you pay each month for your car insurance or a charge that's added on top of a standard payment. It also means a prize or reward. As an adjective, premium implies something of superior quality that probably costs more too. Premium comes straight out of Latin, meaning “reward.” It was first used as an adjective around 1925, in the phrase "premium butter."

Example Sentences

Rivian said the R2 Premium will arrive in late 2026 for around $54,000, followed by an R2 Standard version in 2027 priced at $44,990.

From Los Angeles Times • Jun. 10, 2026

Many of the adverts viewed by the BBC were posted by X user accounts with blue ticks - a symbol indicating a subscription to the platform's Premium tier.

From BBC • Jun. 9, 2026

Premium service with an intuitive interface and top-tier security ExpressVPN is our recommended VPN for its balance of high-tier security and effortless usability.

From Salon • Jun. 2, 2026

Premium screenings are playing a particularly important role in a theatrical market that is finally mounting a strong comeback from the multiple disruptions of Covid-era shutdowns and crippling Hollywood strikes.

From The Wall Street Journal • May 10, 2026

Wherever butter is specified in a recipe use a slightly smaller quantity of Swift's Premium Oleomargarine, it costs less and is just as good.

From The Kitchen Encyclopedia Twelfth Edition (Swift & Company) by Anonymous

Related Words

• dividend
• fee
• stock
• value