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. at a premium
   1. in great demand or of high value, usually because of scarcity
   2. above par

Other Words From

• non·premi·um noun
• super·premi·um adjective noun

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.

More idioms and phrases containing premium

see at a premium ; put a premium on .

Synonym Study

See bonus.

Example Sentences

It also brings extra funds for schools through the government's pupil premium grant.

From BBC

In October, the car manufacturer reported a 64% drop in third-quarter profits compared with a year earlier, primarily blaming a slump in demand from China, traditionally a key market for Germany’s premium car brands.

From BBC

With “Succession” gone the premium cable channel needs something to fill the yawning space between seasons of “House of the Dragon.”

From Salon

In the episodes I’ve seen, the action takes place largely indoors — it’s less “Lawrence of Arrakis” than it is, you know, a premium cable show.

From Los Angeles Times

Soon Mr. Perez and several of his deputies were charged in California with defrauding insurers of nearly $40 million in premiums.

From New York Times

Related Words

• dividend
• fee
• stock
• value