I. ˈprēmēəm, esp Brit -myəm noun
( plural premiums -mz ; also pre·mia -mēə, -myə)
Etymology: Latin praemium booty, profit, reward, from prae- pre- + -emium from emere to take, buy) — more at redeem
1.
a. : a reward or recompense for a particular act : a prize to be won for superior performance or successful competition : award
a premium for the best yearling steer exhibited
encouraging children with premiums for good conduct
b. : something paid over and above a fixed wage, price, or other remuneration : bonus
immediately after the war a new car could only be obtained by paying a considerable premium
with incentive pay and other premiums his income was nearly double the basic wage
a third shift premium
c.
(1) : something offered or given for the loan of money usually apart from or in addition to interest
had to pay a premium to get his mortgage
(2) : a sum in advance of or in addition to the nominal value of something ; especially : such a sum added to the face or par value of a mortgage or security usually as a condition of redeeming it at a particular time or under specified circumstances
bonds callable at a premium of six percent
d. : something (as an article of merchandise) given without charge or at less than usual price with the purchase of a product or service
e. : bonus 4
2.
a. : the consideration paid in money or otherwise for a contract of insurance in the form of an initiation fee, an admission fee, an assessment, or a stipulated single or periodic payment according to the nature of the insurance — see earned premium , gross premium , level premium , minimum premium , natural premium , net premium , single premium , unearned premium
b. : a payment made for instruction (as under an apprentice system) in a trade or profession
3. : a high value or a value in excess of that normally or usually expected
put a premium on accuracy
gold coin had a considerable premium over paper money
selling at a premium
found housing at a premium
a premium on honesty in government
II. adjective
1. : of exceptional quality or ability
a premium student
premium products
2. : commanding a higher than usual price especially because of superior quality
premium gasolines