noun pre·mi·um \ˈprē-mē-əm\

: the price of insurance : the amount paid for insurance

: a price that is higher than the regular price

: a high or extra value

Full Definition of PREMIUM

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
:  the consideration paid for a contract of insurance
:  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

Other Business Terms

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



: high or higher than normal

: of high or higher than normal quality

Full Definition of PREMIUM

:  of exceptional quality or amount; also :  higher-priced

Examples of PREMIUM

  1. <lavish feasts at which premium wines flowed freely>

First Known Use of PREMIUM

PREMIUM Defined for Kids


noun pre·mi·um \ˈprē-mē-əm\

Definition of PREMIUM for Kids

:  a reward for a special act
:  an amount above the regular or stated price <There is a premium for overnight delivery.>
:  the amount paid for a contract of insurance <health insurance premiums>
:  a high or extra value <He put a premium on accuracy.>
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