premium Meaning, Definition & Usage

  1. noun payment for insurance
    insurance premium.
  2. noun the amount that something in scarce supply is valued above its nominal value
    • they paid a premium for access to water
  3. noun a fee charged for exchanging currencies
    agio; agiotage; exchange premium.
  4. noun a prize, bonus, or award given as an inducement to purchase products, enter competitions initiated by business interests, etc.
    • they encouraged customers with a premium for loyal patronage
  5. noun payment or reward (especially from a government) for acts such as catching criminals or killing predatory animals or enlisting in the military
    bounty.
  6. adjective satellite having or reflecting superior quality or value
    • premium gasoline at a premium price

WordNet

Pre"mi*um noun
Etymology
L. praemium, originally, what one has got before or better than others; prae before + emere to take, buy. See Redeem.
Wordforms
plural Premiums
Definitions
  1. A reward or recompense; a prize to be won by being before another, or others, in a competition; reward or prize to be adjudged; a bounty; as, a premium for good behavior or scholarship, for discoveries, etc.
    To think it not the necessity, but the premium and privilege of life, to eat and sleep without any regard to glory. Burke.
    The law that obliges parishes to support the poor offers a premium for the encouragement of idleness. Franklin.
  2. Something offered or given for the loan of money; bonus; -- sometimes synonymous with interest, but generally signifying a sum in addition to the capital.
    People were tempted to lend, by great premiums and large interest. Swift.
  3. A sum of money paid to underwriters for insurance, or for undertaking to indemnify for losses of any kind.
  4. A sum in advance of, or in addition to, the nominal or par value of anything; as, gold was at a premium; he sold his stock at a premium.

Webster 1913