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

The promise of these premium waters is purity.

From The Wall Street Journal ● Jul. 29, 2026

The premium is currently 150% in Gwynedd and Ceredigion, with Pembrokeshire opting for 125%.

From BBC ● Jul. 28, 2026

“What they are doing is shifting the premium cost more to the older retirees,” Marcia Mantell, an independent retirement consultant and author of “Creating Your Medicare Recipe,” told MarketWatch.

From MarketWatch ● Jul. 28, 2026

The health insurance company on Tuesday said it now expects higher revenue in the year, driven largely by premium tax revenue, as well as its Marketplace and Medicaid businesses.

From The Wall Street Journal ● Jul. 28, 2026

Yes, I’ll need one of your premium models.”

From "The Serpent King" by Jeff Zentner

Part D premiums are going up in part because of spending on pricey and popular medications like GLP-1s.

From MarketWatch ● Jul. 28, 2026

Medicare drug premiums are rising due to growing expenses for GLP-1 medications, specialty drugs and Inflation Reduction Act changes.

From The Wall Street Journal ● Jul. 28, 2026

However, she says that "longer term there is a chance that we may end up seeing less insurable destinations and increased premiums".

From BBC ● Jul. 27, 2026

“So that’s where our premiums went,” one guest observed with a low whistle as he arrived at the state-of-the art headquarters Reilly built not long after the Proposition 103 campaign.

From Los Angeles Times ● Jul. 26, 2026

Everyone concerned apparently assumed they were being paid insurance premiums to take basically the same sort of risk they had been taking for nearly a decade.

From "The Big Short" by Michael Lewis

Related Words

• dividend
• fee
• stock
• value