Many people are willing to pay a premium to live near the ocean.
- 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.
To put a premium on punctuality.
An example of premium used as an adjective is the phrase premium gasoline which means a gasoline with a higher octane rating.
Offered the backpack as a premium for students opening new bank accounts.
- 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.
An example of a premium is an end of the year bonus.
An example of a premium is a monthly car insurance payment.
Employers put a premium on honesty and hard work.
- More valuable than usual, as from scarcity:Fresh water was at a premium after the reservoir was contaminated.
- at a value or price higher than normal
- very valuable, usually because of scarcity
Other Word Forms
Origin of premium
- Latin praemium inducement, reward prae- pre- emere to take, buy em- in Indo-European roots
From American Heritage Dictionary of the English Language, 5th Edition