I. ˈprē-mē-əm noun
Etymology: Latin praemium booty, profit, reward, from prae- + emere to take, buy — more at redeem
Date: 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 premium 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 usually expected
put a premium on accuracy
II. adjective
Date: 1844
: of exceptional quality or amount ; also : higher-priced