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 market would also still need a risk premium for the possibility of a deal failing “relatively quickly,” while not addressing the diesel shortage, he says in a note.

From The Wall Street Journal ● Aug. 7, 2026

Leeds boss Daniel Farke appears willing to pay a premium despite Trafford's limited opportunities at Manchester City last season, after both Karl Darlow and Illan Meslier left Elland Road this summer.

From BBC ● Aug. 6, 2026

“At a time when audiences are increasingly fragmented, the World Cup demonstrated the unique power of Fox to deliver live premium sports that bring people together at scale,” Fox Corp.

From Los Angeles Times ● Aug. 6, 2026

However, despite this drop, the combined premium share of Apple and Samsung climbed to 84% in 1H 2026, up from 82% in 1H 2025.

From The Wall Street Journal ● Aug. 6, 2026

Burry made his semiannual premium payments and, in return, received protection against the default of a billion dollars’ worth of bonds.

From "The Big Short" by Michael Lewis

These rebates help keep down premiums, which are subsidized by the government.

From The Wall Street Journal ● Aug. 6, 2026

Jet fuel and diesel were particularly hit and commanded high premiums.

From The Wall Street Journal ● Aug. 5, 2026

For SSI purposes, Medicare premiums are a personal medical expense — not a household shelter expense that a spouse is expected to cover.

From MarketWatch ● Aug. 4, 2026

“No one will be seeing higher or lower premiums for their automobile policies based on this ruling,” said Sanchez, who noted several previous commissioners didn’t change the regulation.

From Los Angeles Times ● Aug. 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