pre·​mi·​um | \ ˈprē-mē-əm How to pronounce premium (audio) \

Definition of premium

 (Entry 1 of 2)

1a : 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



Definition of premium (Entry 2 of 2)

: of exceptional quality or amount also : higher-priced

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Synonyms & Antonyms for premium

Synonyms: Noun

Synonyms: Adjective

Antonyms: Adjective

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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
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Recent Examples on the Web: Noun There are many considerations that go into what people pay for Obamacare premiums, including age and smoking status, but on average, mid-level plans in most states cost $374 a month for an individual. Kimberly Leonard, Washington Examiner, "New group will boost non-Obamacare plans halted by Trump administration," 14 Feb. 2020 However, any deal would have to involve a hefty premium to Ericsson’s share price, said Christer Gardell, Cevian’s managing partner. Dominic Chopping, WSJ, "Nokia, Ericsson Shares Rise After U.S. Floats Investment Idea to Counter Huawei," 7 Feb. 2020 That premium, then, comes from the work the AI is doing to select your images for you. Popular Science, "Google’s wants AI to choose your best photos and mail you prints every month," 4 Feb. 2020 Annual premiums for flood insurance average around $700 per year. Carmen Collins, Country Living, "Your Basement Just Flooded! Here's What To Do.," 24 Jan. 2020 The premiums — which typically range from $3 to $50 a month — cost less than what a renter would have paid upfront when signing a lease. Khristopher J. Brooks, CBS News, "More locales weigh replacing apartment security deposits for renters," 23 Jan. 2020 Dell promises premium, feature-rich devices for professionals in its new Latitude 9000 series. Popular Mechanics Editors, Popular Mechanics, "CES Editors’ Choice Awards: The Most Exciting Tech for 2020," 9 Jan. 2020 Those costs will inevitably get passed on to consumers in some form, be it an increase in premiums, deductibles, co-pays or changes to coverage and doctor networks. Author: Ariana Eunjung Cha, Anchorage Daily News, "Why millions of Americans - including men - will start getting a separate bill for abortion coverage in 2020," 27 Dec. 2019 Insurance companies base premiums on their expenses, and the more those rise the more participants have to pay. Kaiser Health News, oregonlive, "Throat swab leads to $28,865 medical bill," 25 Dec. 2019 Recent Examples on the Web: Adjective The price for the most premium single-day tickets increased 3 percent and 5 percent for parkhopper tickets, which allow for visitors to go back and forth between Disneyland and Disney California Adventure Park. Ryan Parker, The Hollywood Reporter, "Disneyland Hikes Prices on Tickets and Annual Passes," 11 Feb. 2020 Lindt—a rare food company that is focused almost exclusively on premium brands—increased its global revenue by 6.1% last year, stripping out currency and portfolio changes. Carol Ryan, WSJ, "Cocoa Cartel Is Less Bitter for Luxury Chocolate," 17 Jan. 2020 Honda reaped the most segment awards with five wins, while Land Rover, for the sixth time, earned the top spot for premium brand. Houston Chronicle, "ALG’s 2020 Residual Value Awards announced," 23 Nov. 2019 That’s less than premium brands such as Mercedes, and even lower than the $0.32 to $0.35 for standard sedans. Michael J. Coren, Quartz, "Electric cars are changing the cost of driving," 8 Nov. 2019 Furthermore, many luxury-car engines require premium fuel, which also adds to the cost of ownership. Washington Post, "Used luxury or fully-loaded new car? Edmunds weighs both," 17 July 2019 Go with premium bullets such as Winchester’s Fail Safe, Barnes Triple-Shock X, or for long-range shooting Barnes MRX bullets. The Editors, Field & Stream, "Everything You Need to Know About Hog Hunting," 13 Jan. 2020 The state’s highest court ruled in Sleepy’s that retailers were doing this incorrectly, that time-and-a-half for overtime (and premium pay on Sundays) must be paid out by employers separately from commissions and draws., "But will they follow his lead?," 8 May 2019 Despite the drop, deluxe and premium box sets proved to be a popular purchase with over 100,000 people buying Queen's Platinum Collection on CD. Richard Smirke, Billboard, "Lewis Capaldi & Ed Sheeran Lift U.K. Streaming to Record High in 2019: BPI," 1 Jan. 2020

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.

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First Known Use of premium


1601, in the meaning defined at sense 1a


1844, in the meaning defined above

History and Etymology for premium


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

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Time Traveler for premium

Time Traveler

The first known use of premium was in 1601

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Statistics for premium

Last Updated

18 Feb 2020

Cite this Entry

“Premium.” Dictionary, Merriam-Webster, Accessed 22 Feb. 2020.

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More Definitions for premium


How to pronounce premium (audio)

English Language Learners Definition of premium

 (Entry 1 of 2)

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



English Language Learners Definition of premium (Entry 2 of 2)

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


pre·​mi·​um | \ ˈprē-mē-əm How to pronounce premium (audio) \

Kids Definition of premium

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.


pre·​mi·​um | \ ˈprē-mē-əm How to pronounce premium (audio) \

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

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