premium

play

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

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.

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

First Known Use: 1601

adjective pre·mi·um

1844

1844

play

noun

adjective

play

noun pre·mi·um \ˈprē-mē-əm\

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.

play

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