[pre.mi.um] n [L praemium booty, profit, reward, fr. prae- + emere to take, buy--more at redeem] (1601) 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 ~ 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 usu. expected "put a ~ on accuracy"
[2]premium adj (1844): of exceptional quality or amount; also: higher-priced