premium

1 of 2

noun

pre·​mi·​um ˈprē-mē-əm 

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

premium

2 of 2

adjective

: of exceptional quality or amount

also : higher-priced

Synonyms of premium

Noun

• prize
• award
• accolade
• honor

Adjective

• expensive
• valuable
• costly
• precious

Examples of premium in a Sentence

Noun

Health insurance premiums went up again this year.

The monthly premium for your health insurance is deducted from your paycheck.

Many customers are willing to pay a premium for organic vegetables.

Adjective

lavish feasts at which premium wines flowed freely

Recent Examples on the Web

Noun

Minor refreshes will be added to other classes, such as an extra inch of reclining space in premium economy cabins, and new upholstery in economy class. — Lim Hui Jie, CNBC, 6 Nov. 2026

Insurers have blamed the law and its alleged favoritism toward providers in the arbitration process for contributing to recent premium hikes, and Democrats argue that creating a simpler system would help rein in rate increases for everyone. — Dylan Scott, Vox, 5 Nov. 2026

Adjective

Democratic leaders have said that reversing Republican cuts to premium subsidies for health insurance and work requirements for Medicaid will be at the top of their agenda. — Selena Simmons-Duffin, NPR, 4 Nov. 2026

Its more serious cousin, Cru Beaujolais, is made in a cluster of 10 villages in the northern part of the region, with premium grapes and more sophisticated winemaking methods. — Sean Timberlake, Sacbee.com, 4 Nov. 2026

Word History

Etymology

Noun

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

First Known Use

Noun

1601, in the meaning defined at sense 1a

Adjective

1856, in the meaning defined above

Phrases Containing premium

• at a premium
• come at a premium
• put/place a premium on
• time is at a premium

Kids Definition

premium

1 of 2 noun

pre·​mi·​um ˈprē-mē-əm 

1

a

: a reward for an act

b

: a sum over and above a regular or stated price

c

: something given free or at a lower price with the purchase of a product or service

2

: the amount paid for a contract of insurance

3

: a high or extra value

put a premium on accuracy

premium

2 of 2 adjective

: of high quality, value, or price

Etymology

Noun

Latin praemium "booty, profit, reward," from prae- "before" + emere "to take, buy"

Legal Definition

premium

noun

pre·​mi·​um ˈprē-mē-əm 

1

: the difference between the face value or par value of a security and its market price when the latter is greater compare discount

2

: the price paid for an insurance contract equal to the cost per unit times the number of units