premium

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noun pre·mi·um \ˈprē-mē-əm\

Definition of premium

1a : a reward or recompense for a particular actb : a sum over and above a regular price paid chiefly as an inducement or incentivec : a sum in advance of or in addition to the nominal value of something bonds callable at a premium of six percentd : 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

See premium defined for English-language learners

See premium defined for kids

Examples of premium in a Sentence

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.

Recent Examples of premium from the Web

Then, during World War II, almost everything road trip-related was rationed, with tires, gasoline and leisure time at a premium.

— andrew wood, Smithsonian, "The Rise and Fall of the Great American Motel", 1 July 2017
Carney proposed saving $3.5 million by eliminating a state benefit allowing spouses who are both active or retired state workers to pay a combined health insurance premium of only $25 a month.

— Washington Post, "Delaware budget committee cuts $51 million to balance budget", 28 June 2017
The proposal would allow insurers to charge older people up to five times more than others, which could mean lower premiums for younger people.

— kaiser health news, Teen Vogue, "How the Senate GOP Health Bill Would Affect Young People", 27 June 2017
Stronger credits and lower premiums would seem designed to make exchange plans more affordable and less volatile under the BCRA than under the AHCA, and the CBO found just that.

— vann r. newkirk ii, The Atlantic, "The Senate's Health-Care Bill Is Still Unaffordable for Poor People", 26 June 2017
Under that proposal, people who went more than 63 days without coverage would have to pay a premium surcharge of 30 percent.

— russell berman, The Atlantic, "A New Penalty for the Uninsured in the GOP Health-Care Bill", 26 June 2017
A slightly stronger version would default people into coverage, charging a premium rather than a penalty, while allowing people to opt out.

— lisa ward, WSJ, "The Case for Giving Health-Care Consumers a ‘Nudge’", 25 June 2017
Like its counterpart legislation in the House, the Senate package would maintain federal subsidies for Obamacare insurance premiums — including policies sold through the Covered California health exchange — for two more years.

— paul sisson, sandiegouniontribune.com, "Nation's top health official vows attack on wasteful spending", 24 June 2017
The Queen Anne Enclosure is the equivalent of flying premium economy.

— steven stolman, Town & Country, "How to Get into the Royal Enclosure at Ascot", 23 June 2017

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'premium'. Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

Origin and Etymology of premium

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

NEW!

First Known Use: 1601

See Words from the same year

Other Business Terms

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

premium

adjective pre·mi·um

Definition of premium

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

See premium defined for English-language learners

Examples of premium in a Sentence

lavish feasts at which premium wines flowed freely

Recent Examples of premium from the Web

Senate GOP bill: Premium subsidies are keyed to income, age and geography, and are more tightly focused on lower-income people.

— ricardo alonso-zaldivar, The Seattle Times, "Here’s how Congress’ health bills and Obamacare compare on Medicaid, abortion, taxes and more", 23 June 2017
Premium subsidies are available to those who earn less than 400 percent of the poverty level (about $48,240 for an individual and $98,400 for a family of four).

— julie rovner, Kaiser Health News, "If Insurance Market Crashes, Can Lawmakers Put The Pieces Back Together?", 8 June 2017
The Gala event will feature a tri-content culinary experience where attendees can enjoy delicacies from Asia, Europe and South America, including an open bar with premium liquors.

— miamiherald, "Success for Miami Rowing Club, Ransom Everglades sailing", 4 June 2017
Leno will earn $1.797 million this season in the final year of his rookie contract at a position that commands premium pay for veteran starters.

— brad biggs, chicagotribune.com, "A lot on the line for Bears left tackle Charles Leno", 1 June 2017
Premium sports content is key to drive subscriber growth and that’s why the value of rights has increased.

— stefan nicola, Bloomberg.com, "Billionaire’s Soccer Shakeup Threatens TV’s Reign", 19 May 2017
Lot prices start in the low $70,000s, with premium view lots ranging in price from $120,000 to $145,000.

— kansascity, kansascity.com, "Canyon Creek Point: Maintenance-provided living surrounded by natural beauty", 19 May 2017
For an additional $350, the Sugar Shack also offers bottle service which includes one bottle of premium liquor of your choice on Friday and Saturdays.

— lyndsey matthews, Country Living, "This Tiny House Is in the Most Unexpected Location", 4 May 2017
Premium ingredients top a fine, crispy yet chewy crust like nonna Isola must have made.

— michele parente, sandiegouniontribune.com, "Where to eat? 3 places to try now", 26 Apr. 2017

First Known Use of premium

1844

PREMIUM Defined for English Language Learners

premium

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noun

Definition of premium for English Language Learners

: the price of insurance : the amount paid for insurance
: a price that is higher than the regular price
: a high or extra value

premium

adjective

Definition of premium for English Language Learners

: high or higher than normal
: of high or higher than normal quality

PREMIUM Defined for Kids

premium

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noun pre·mi·um \ˈprē-mē-əm\

Definition of premium for Students

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

Law Dictionary

premium

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noun pre·mi·um \ˈprē-mē-əm\

Legal Definition of premium

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