Main Entry:

¹pre·mi·um

Pronunciation:

\ˈprē-mē-əm\

Function:

noun

Etymology:

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

Date:

1601

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 service2: the consideration paid for a contract of insurance3: a high value or a value in excess of that normally or usually expected <put a premium on accuracy>