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 Alden had offered to buy the balance of Tribune in December; its all-cash offer reflects a 35% premium over the Tribune’s closing stock price on Dec. 30, the last trading day before Alden’s offer was publicly disclosed. Author: Paul Farhi, Elahe Izadi, Anchorage Daily News, "Tribune Publishing, owner of several major U.S. newspapers, to be acquired by hedge fund known for slashing newsroom jobs," 17 Feb. 2021 Under the terms of the transaction, NIC stockholders will receive $34 per share in cash, a 14% premium on its Tuesday closing price of $29.81. Paul O'donnell, Dallas News, "Plano-based Tyler Technologies strikes $2.3 billion deal to buy government payments company," 10 Feb. 2021 Spot prices have climbed to a premium over prices for crude to be delivered down the line, showing that traders are willing to pay more for immediate access to oil. Joe Wallace, WSJ, "Tightening Oil Supplies Inject New Momentum Into Price Rally," 7 Feb. 2021 For a worker at one of these larger companies with $1,000 a week in eligible earnings, that translates to a weekly premium of $7.50, usually split between the individual and employer. Globe Staff,, "Small businesses face new challenges as state’s paid leave program kicks in," 31 Dec. 2020 On the employee side, the previous $700 a year for single coverage ($58 a month) will increase to a monthly premium ranging from roughly $82 to $100 a month, depending on medical coverage and prescription plan. Thomas Jewell, cleveland, "Cleveland Heights-University Heights School District, teachers come to terms with ‘fair compromise’ on contract," 15 Dec. 2020 The all-stock transaction translates to a slim 15% premium to Concho's share price on October 13, the day before rumors of a takeover swirled on Wall Street. Matt Egan, CNN, "The oil industry is in crisis. ConocoPhillips is doubling down," 19 Oct. 2020 The service offers a free option; however, users can upgrade to premium for $9.95 for one month, $7.95 per month for three months, or $4.95 per month for six months. Stacey Leasca, Glamour, "13 Best Dating Sites to Find Love," 23 Aug. 2020 Similar to the premium Faut gets for his non-GMO corn. Sarah Bowman, The Indianapolis Star, "How consumers could drive more farmers to fight climate change," 18 June 2020 Recent Examples on the Web: Adjective The Mavericks’ attempt to counter the Hawks’ response to their original defensive plans will be a premium focus. Callie Caplan, Dallas News, "Traps, pressure and ‘surprise’: How Mavs’ defense will try to slow Hawks’ Trae Young for second time in one week," 10 Feb. 2021 All three locations of dim sum stalwart Koi Palace — and its sister restaurant Dragon Beaux — are serving poon choi, also known as treasure pot, overflowing with premium ingredients to signify wealth, abundance and prosperity. Janelle Bitker, San Francisco Chronicle, "Where to order Lunar New Year specials at Bay Area restaurants, including dumplings and poon choi," 1 Feb. 2021 While some newer models offer an even more premium experience than the older 6, Mazda's family-car-turned-sports sedan has held up well since its last full redesign in 2014. Drew Dorian, Car and Driver, "Tested: 2021 Mazda 6 Turbo Remains a Winning Package," 27 Jan. 2021 Watch Series 6 is the premium model, priced at $399, which features a new sensor that can take a reading of blood oxygen levels in 15 seconds. Boone Ashworth, Wired, "Everything Apple Announced Today, From Watches to Home Workouts," 15 Sep. 2020 The Ellevest sign-up presents plans for $1/month, $5/month, or $9/month, with a suite of premium services at the top price point. Michael Taylor, San Antonio Express-News, "Taylor: A winning financial app for women," 3 Feb. 2021 Pricing will be set at 10,900 South Korean Won (around $9.74) plus VAT a month for premium subscribers, and 16,350 South Korean Won ($14.62) plus VAT for its duo plan. Richard Smirke, Billboard, "Spotify Launches in South Korea: 'You're Going to See Korean Culture Throughout the World Amplified'," 1 Feb. 2021 Launched in 2011, this luxury brand has styles at premium prices ($200-$500). Andrea Zendejas, Marie Claire, "19 Sunglasses Brands to Have on Your Radar for Summer 2021," 27 Jan. 2021 The Snyder cut is being sold as a four-hour feature on the premium streamer that includes new footage, new visual effects and new music. Los Angeles Times, "Zack Snyder says he left ‘Justice League’ because he had ‘zero energy’ for the fight," 26 Jan. 2021

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

22 Feb 2021

Cite this Entry

“Premium.” Dictionary, Merriam-Webster, Accessed 3 Mar. 2021.

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More Definitions for premium



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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