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

In a blow, the Congressional Budget Office said McConnell’s latest bill would produce 22 million additional uninsured people by 2026 and drive up premiums for many older Americans.

— Washington Post, "GOP leaders plan Tuesday health vote, it’s an uphill climb," 20 July 2017
The CBO estimates that a straight repeal would result in 32m more uninsured by 2026, as well as leading to skyrocketing premiums.

— The Economist, "Not repealing Obamacare," 20 July 2017
The Texas senator argues that the proposal would help drive down premiums and offer Americans greater freedom in choosing their health-insurance policies.

— vanityfair.com, "The Republican Health-Care Plan Just Suffered a Major Setback," 17 July 2017
If making ahead and refrigerating, then be sure to bring it to room temperature before serving, or heat it up and top each serving with a dollop of premium vanilla ice cream or silky crème fraîche.

— susan russo, sandiegouniontribune.com, "Donut peaches worthy of higher profile," 17 July 2017
There is substantial Republican support for that idea -- the original McConnell health-care bill included $50 billion in insurer funds to stabilize markets and reduce premiums.

— the washington post, AL.com, "Bipartisan group of senators looks for 'Plan B' for health care," 12 July 2017
The global benchmark traded at a premium of $2.23 to September WTI.

— ben sharples, Bloomberg.com, "Oil Extends Advance Toward $46 on Signs U.S. Stockpiles Declined," 11 July 2017
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

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! Time Traveler

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