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

Then it asked me if I wanted to continue with the free version of the app or upgrade to their premium plan.

From Slate ● Sep. 6, 2026

The men work for Kuramoto Ice, a century-old company in Ishikawa on the Sea of Japan coast and one of dozens of Japanese firms producing ultra-clear, premium ice.

From Barron's ● Sep. 6, 2026

The surcharge Virgin introduced added £50 to an economy class fare, £180 to premium and £360 to business class.

From BBC ● Sep. 5, 2026

Corporate bonds are priced at a spread, or premium, above the prevailing Treasury rate to help compensate investors for default risks.

From MarketWatch ● Sep. 3, 2026

Twenty cents weekly insurance premium had to come out of that.

From "A Tree Grows in Brooklyn" by Betty Smith

The Wall Street Journal and the Athletic reported Walter used billions of dollars of those insurance premiums to buy sports teams.

From Los Angeles Times ● Sep. 5, 2026

The remaining part of the fund’s bond portfolio should provide exposure to more sources of risk premiums in the bond market, it added.

From The Wall Street Journal ● Sep. 4, 2026

He warns insurance premiums are rising significantly and making the cost of doing business "unfeasible".

From BBC ● Sep. 4, 2026

For example, premiums on riskier corporate bonds — the extra yield investors demand versus safer government debt — were around the lowest on record this week.

From MarketWatch ● Sep. 4, 2026

After tramping the streets and pounding on doors to collect premiums, I was dry, strained, too tired to read or write.

From "Black Boy" by Richard Wright

Related Words

• dividend
• fee
• stock
• value