premium

American  

[pree-mee-uhm] / ˈpri mi əm /

noun

premiums plural

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

• nonpremium
  noun
• superpremium
  adjective

Inflected Forms

Nouns

• premiums
  plural

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

See Examples For:

premium premiums

Peacock was the last major premium subscription video-on-demand service launched by a legacy studio to reach profitability, said Brandon Katz, director of insights and content strategy at Greenlight Analytics.

From Los Angeles Times ● Jul. 23, 2026

T-Mobile has attracted “higher quality accounts” to its customer mix following last year’s rollout of Experience plans, which offer features like premium unlimited data, streaming perks and a five-year pricing guarantee.

From MarketWatch ● Jul. 23, 2026

"Gamers are willing to trade a little fidelity for convenience, but not to pay premium prices for something they don't own which stutters when the Wi-Fi dips," he said.

From BBC ● Jul. 23, 2026

Its Birkin handbags continue to sell at a premium to retail prices in the secondhand market.

From The Wall Street Journal ● Jul. 22, 2026

At length, Mrs. Glass heaved one of her premium sighs and returned her attention to Zooey, who, pushing at his cuticles, had pivoted a half turn toward the morning daylight.

From "Franny and Zooey" by J. D. Salinger

Insurance companies argue that big awards are pushing up medical spending and premiums for employers.

From The Wall Street Journal ● Jul. 22, 2026

The estimate includes Medicare premiums, out-of-pocket prescription-drug costs and other medical expenses such as copayments, coinsurance and deductibles for doctor and hospital visits.

From MarketWatch ● Jul. 21, 2026

Auto insurance premiums have declined industrywide after spiking two years ago.

From The Wall Street Journal ● Jul. 20, 2026

It’s expected that California insurers probably would collect the data over six months and use them to quote premiums for the next six-month period.

From Los Angeles Times ● Jul. 20, 2026

He was now effectively short $10 billion in subprime mortgage bonds, and it was costing him $100 million a year in premiums, with no end in sight.

From "The Big Short" by Michael Lewis

Related Words

• dividend
• fee
• stock
• value