[ pree-mee-uhm ]
See synonyms for premium on
  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.

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

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

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

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

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

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

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

  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.

  1. of or relating to premiums: to work in premium sales.

Idioms about premium

  1. at a premium,

    • at an unusually high price.

    • in short supply; in demand: Housing in that area is at a premium.

Origin of premium

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

synonym study For premium

2. See bonus.

Other words for premium

Other words from premium

  • non·pre·mi·um, noun
  • su·per·pre·mi·um, adjective, noun

Words Nearby premium Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2023

How to use premium in a sentence

British Dictionary definitions for premium


/ (ˈpriːmɪəm) /

  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

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

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

    • (as modifier): a premium offer

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

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

  4. great value or regard: to put a premium on someone's services

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

  6. at a premium

    • in great demand or of high value, usually because of scarcity

    • above par

Origin of premium

C17: from Latin praemium prize, booty, reward

Collins English Dictionary - Complete & Unabridged 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Other Idioms and Phrases with premium


see at a premium; put a premium on.

The American Heritage® Idioms Dictionary Copyright © 2002, 2001, 1995 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company.