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

The most you can lose is the premium, and if you’re right, you’ll get rich and have earned it.

From The Wall Street Journal ● Nov. 6, 2026

“Traders were paying a premium for protection ahead of the election, but once the results became clear, much of that demand disappeared.”

From The Wall Street Journal ● Nov. 5, 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

And the kind of medicine Peeta needs would have been at a premium from the beginning.

From "The Hunger Games" by Suzanne Collins

A few things might narrow those premiums, too.

From The Wall Street Journal ● Nov. 6, 2026

But higher premiums aren’t the only notable issue this year.

From MarketWatch ● Nov. 4, 2026

Over the past two years, the premiums for these plans have soared 42%.

From MarketWatch ● Nov. 4, 2026

BDCs sometimes trade at discounts or premiums to their net asset value and often at discounts because many use leverage to boost returns.

From The Wall Street Journal ● Nov. 3, 2026

The running cost, in premiums Lippmann paid, was tens of millions of dollars a year, and his losses looked even bigger.

From "The Big Short" by Michael Lewis

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