1

premium

noun pre·mi·um \ ˈprē-mē-əm \
Updated on: 19 Nov 2017

Definition of premium

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

Examples of premium in a Sentence

  1. Health insurance premiums went up again this year.

  2. The monthly premium for your health insurance is deducted from your paycheck.

  3. Many customers are willing to pay a premium for organic vegetables.

Recent Examples of premium from the Web

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


2

premium

adjective

Definition of premium

: of exceptional quality or amount; also : higher-priced

Examples of premium in a Sentence

  1. lavish feasts at which premium wines flowed freely

Recent Examples of premium from the Web

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.

First Known Use of premium

1844



PREMIUM Defined for English Language Learners

premium

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

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

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


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