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.

---

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

---

premium More Idioms  

1. see at a premium; put a premium on.

---

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 company’s benefit ratio, which measures the proportion of premium revenue paid out to cover medical costs, was 93.7%, compared with analyst views for 94.2%.

From The Wall Street Journal ● Nov. 6, 2026

The supply deluge and volatility this year have pressured investment-grade AI corporate bonds, which have been trading at a large premium to the rest of the market.

From MarketWatch ● Nov. 6, 2026

I will not pay a premium for a bag of frozen vegetables that I’m going to zhush up anyway.

From Salon ● Nov. 5, 2026

Waiting until age 73 to withdraw from tax-deferred accounts can trigger higher taxes and Medicare premium surcharges.

From Barron's ● Nov. 5, 2026

Then Abel, who had been pissing against the church wall, called out that mass was starting and we all rushed to get the premium pews at the very back of the church.

From "Bless Me, Ultima" by Rudolfo Anaya

About 19% of Americans with ACA plans said they downgraded their coverage to a plan with lower premiums and higher out-of-pocket costs in 2026, according to a Commonwealth Fund survey conducted earlier this year.

From MarketWatch ● Nov. 4, 2026

That said, some states have stepped in with their own programs that help cover ACA premiums for people in their communities.

From MarketWatch ● Nov. 4, 2026

Employers responded to higher costs first by having workers contribute more via deductibles or premiums, cost-sharing for specific services, prior authorization for some services, or changed plans or providers.

From The Wall Street Journal ● Nov. 3, 2026

ACA plan premiums will rise by 13% in 2027, the second straight year of double-digit increases in a market that is already facing shrinking enrollment.

From The Wall Street Journal ● Nov. 3, 2026

From cancer patients struggling to pay health-care premiums and from people who’d lost their homes to foreclosure.

From "Becoming" by Michelle Obama

Random Word

Spin the wheel and learn a new word!

---

Related Words

• dividend
• fee
• stock
• value

---