noun pl. premiums -·ums

1. a reward or prize, esp. one offered free or at a special low price as an added inducement to buy or do something; bonus
2. an additional amount paid or charged; specif.,
   1. an amount paid for a loan in addition to interest
   2. an amount paid, as for stock, above the nominal or par value
   3. additional wages paid as for overtime or dangerous work
3. a payment; specif.,
   1. the amount payable or paid, in one sum or periodically, for an insurance policy
   2. Now Rare a fee paid for instruction in a trade, etc.
   3. a fee paid by a borrower of stock to the lender, as in short selling
4. very high value to put a premium on punctuality
5. Econ. the amount by which one form of money exceeds another (of the same nominal value) in exchange value, or buying power

Etymology: L praemium, reward, recompense < prae-, before + emere, to take: see pre- & redeem

adjective