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

Aside from the Brooklyn, the fall 2026 women’s line features premium materials sourced in collaboration with Greats’ long-standing manufacturing partners in Portugal and spans key categories including other sneaker silhouettes, ballerinas, and loafers. —Stephen Garner, Footwear News, 6 Feb. 2026

Nonstop routes often come at a premium, so travelers with more time may save money by booking a connecting flight—meaning an itinerary with one or more layovers—even if that includes an overnight stay near the airport. —Lauren Dana Ellman, Travel + Leisure, 6 Feb. 2026

Adjective

The Panthers paid top dollar for Hunt and Moehrig at non-premium positions. —Charlotte Observer, 5 Feb. 2026

It’s made of a premium Polartec fleece that is just as warm as normal fleece but sheds five times fewer microfibers. —Katie Jackson, Travel + Leisure, 5 Feb. 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