premium

1 of 2

noun

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

premium

2 of 2

adjective

: of exceptional quality or amount
also : higher-priced

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
Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Noun
The average monthly premium for a silver plan in Vermont is $1,275—the highest in the nation. Joe Edwards, MSNBC Newsweek, 10 July 2025 Trump's surprise Tuesday announcement of a 50% rate, at the highest end of traders' expectations, sharply jolted the copper market, with the premium paid by U.S. buyers over the rest of the world more than doubling to a record over $2,600. Jenni Reid,holly Ellyatt, CNBC, 10 July 2025
Adjective
Costco can turn to producers who are charging more, and leverage its premium Kirkland Signature brand against them. Morgan Chittum, CNBC, 11 July 2025 Existing Gold’s Gym members with standard multi-club access will need to upgrade to a Multi-Club Plus membership to use the new flagship location, which is considered a premium gym. Travis Webb, Austin American Statesman, 11 July 2025 See All Example Sentences for premium

Word History

Etymology

Noun

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

First Known Use

Noun

1601, in the meaning defined at sense 1a

Adjective

1844, in the meaning defined above

Time Traveler
The first known use of premium was in 1601

Browse Nearby Words

Cite this Entry

“Premium.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/premium. Accessed 15 Jul. 2025.

Kids Definition

premium

1 of 2 noun
pre·​mi·​um ˈprē-mē-əm How to pronounce premium (audio)
1
a
: a reward for an act
b
: a sum over and above a regular or stated price
c
: something given free or at a lower price with the purchase of a product or service
2
: the amount paid for a contract of insurance
3
: a high or extra value
put a premium on accuracy

premium

2 of 2 adjective
: of high quality, value, or price
Etymology

Noun

Latin praemium "booty, profit, reward," from prae- "before" + emere "to take, buy"

Legal Definition

premium

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