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

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Etymology

Origin of premium

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

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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

Lufthansa said it benefited from robust demand across all segments, particularly for premium tickets and on routes to Asia and North America.

From The Wall Street Journal ● Nov. 3, 2026

The deal assigned a $115 billion implied enterprise value to Lumentum, given that Marvell is offering a 24% premium to Lumentum’s closing price as of Oct.

From MarketWatch ● Nov. 2, 2026

Some will criticize the proposal as shifting premium increases onto enrollees.

From The Wall Street Journal ● Nov. 1, 2026

“Trophy properties in irreplaceable locations still command a premium in today’s market,” Reay said.

From Los Angeles Times ● Oct. 31, 2026

We could even charge a premium because we added that layer of respectability to the transaction.

From "Born a Crime: Stories from a South African Childhood" by Trevor Noah

The biggest is planning for a surviving spouse, who could face a smaller standard deduction, narrower tax brackets and higher Medicare premiums.

From MarketWatch ● Nov. 2, 2026

Medicare looks at your tax return from two years earlier, so a conversion this year could theoretically raise your premiums in 2028.

From MarketWatch ● Nov. 2, 2026

The account would pay for premiums first, then what remains could cover deductibles, drug copayments and other out-of-pocket costs.

From The Wall Street Journal ● Nov. 1, 2026

Georgia also stands to benefit because the state keeps savings from its previous federal baseline spending, which it can use to finance reinsurance to lower premiums in high-cost rural areas.

From The Wall Street Journal ● Nov. 1, 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

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