premium

[pree-mee-uhm]

noun

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.

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.

premium

/ 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

Other Word Forms

• nonpremium noun
• superpremium adjective

Word History and Origins

Origin of premium¹

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

Word History and Origins

Origin of premium¹

C17: from Latin praemium prize, booty, reward

Idioms and Phrases

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.

see at a premium; put a premium on.

Synonym Study

See bonus.

Example Sentences

One solution for the underinsured would be to buy more coverage, but as premiums rise faster than incomes, many cannot afford to.

Read more on MarketWatch

Experts say this will cause premiums to skyrocket and force many to go without health care.

Read more on Salon

Today, he said, “the biggest trend is them getting smarter about building their systems. There’s such a premium to being able to move in space.”

Read more on Wall Street Journal

Wallace runs the catering company she founded in Ypsilanti, Mich., and she relies on the federal help to cover most of the monthly $560 premium for her Affordable Care Act health plan.

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Flights to international destinations and in premium classes are still selling out, while domestic and main-cabin sales softened across airlines.

Read more on Wall Street Journal

Related Words

• dividend 
• fee 
• stock 
• value