premium

¹pre·mi·um

noun \ˈprē-mē-əm\

Definition of PREMIUM

1

a : a reward or recompense for a particular act b : a sum over and above a regular price paid chiefly as an inducement or incentive c : a sum in advance of or in addition to the nominal value of something <bonds callable at a premium of six percent> d : something given free or at a reduced price with the purchase of a product or service

2

: the consideration paid for a contract of insurance

3

: a high value or a value in excess of that normally or usually expected <put a premium on accuracy>

Examples of PREMIUM

1. Health insurance premiums went up again this year.
2. The monthly premium for your health insurance is deducted from your paycheck.
3. Many customers are willing to pay a premium for organic vegetables.

Origin of PREMIUM

Latin praemium booty, profit, reward, from prae- + emere to take, buy — more at redeem

First Known Use: 1601

Related to PREMIUM

Synonyms: accolade, blue ribbon, decoration, distinction, honor, kudo, plume, award, prize

Related Words: badge, crown, cup, laurel, medal, order, plaque, plate, ribbon, trophy; applause, bravo, encomium, eulogy, hallelujah, homage, paean, panegyric, plaudit, tribute; citation, commendation, compliment, honorable mention

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Other Business Terms

amortize, caveat emptor, clearinghouse, divest, due diligence, emolument, green-collar, marque, overhead, perquisite