- The definition of premium is something or someone of greater or superior quality.
An example of premium used as an adjective is the phrase premium gasoline which means a gasoline with a higher octane rating.
- Premium is defined as a reward, or the amount of money that a person pays for insurance.
- An example of a premium is an end of the year bonus.
- An example of a premium is a monthly car insurance payment.
- a reward or prize, esp. one offered free or at a special low price as an added inducement to buy or do something; bonus
- an additional amount paid or charged; specif.,
- an amount paid for a loan in addition to interest
- an amount paid, as for stock, above the nominal or par value
- additional wages paid as for overtime or dangerous work
- a payment; specif.,
- the amount payable or paid, in one sum or periodically, for an insurance policy
- Now Rare a fee paid for instruction in a trade, etc.
- a fee paid by a borrower of stock to the lender, as in short selling
- very high value: to put a premium on punctuality
- Econ. the amount by which one form of money exceeds another (of the same nominal value) in exchange value, or buying power
Origin of premiumClassical Latin praemium, reward, recompense ; from prae-, before + emere, to take: see pre- and amp; redeem
at a premium
- at a value or price higher than normal
- very valuable, usually because of scarcity
- An amount paid or required, often as an installment payment, for an insurance policy.
- a. An amount paid to obtain a loan.b. An interest payment, usually on a regular basis, on a loan.
- A sum of money or bonus paid in addition to a regular price, salary, or other amount: Many people are willing to pay a premium to live near the ocean.
- a. The amount at which something, such as a security or a currency, is valued above its initial or nominal price.b. The amount at which a securities option is bought or sold.
- a. Something offered free or at a reduced price as an inducement to buy something else: offered the backpack as a premium for students opening new bank accounts.b. A prize or award.
- An unusual or high value: Employers put a premium on honesty and hard work.
- Archaic Payment for training in a trade or profession.
Origin of premiumLatin praemium, inducement, reward : prae-, pre- + emere, to take, buy; see em- in Indo-European roots.
(plural premiums or premia)
- Premia is much less common than premiums, accounting for less than 1% of total usage in US (COCA) and 4% in UK (BNC).
premium - Investment & Finance Definition
- A price that is above market prices.
- The amount that a policy holder pays an insurance company for coverage.
- In the options market, the cost of the option.
- In the futures market, an upward adjustment in price that is allowed for delivery of a commodity of a higher grade against a futures contract.
premium - Legal Definition
- Money paid to an insurer in exchange for coverage.
- Money paid by a buyer for an option to buy stock or property.
- A reward for a job after it has been done.