Premium

Definition

Premium typically refers to an amount that is paid, often at regular intervals, for insurance, or the amount that you pay to have shares in a company or for goods. It can also mean something given free or at a reduced price with the purchase of a product or service.

Parts of Speech

• Noun: premium

Pronunciation

American English

• IPA Pronunciation: /ˈpriːmiəm/
• Respelling: PREE-mee-uhm (with "PREE" as in "tree," "mee" as in "me," and "uhm" as in "hum")

British English

• IPA Pronunciation: /ˈpriːmɪəm/
• Respelling: PREE-mee-uhm (similar to American English, with "PREE" as in "tree," "mee" as in "me," and "uhm" as in "hum")

In both dialects, "premium" is pronounced with the stress on the first syllable, "PREE." The pronunciation remains consistent across both American and British English, clearly articulating the word with emphasis on the "PREE" part.

Etymology

Derived from the Latin word "praemium," which means "booty, reward." The term has its origins in the idea of something being valued or prized.

Derivatives

• Premiumize
• Premiumization
• Non-premium
• Overpremium
• Underpremium

Synonyms

• Surcharge
• Bonus
• Prize

Antonyms

• Discount
• Deduction
• Drawback

Usage

"Premium" is commonly used in financial, insurance, and marketing contexts. In the insurance sector, it denotes the periodic payment made by the insured party. Meanwhile, in a commercial setting, products or services that are of higher quality or have added features are often labeled as "premium."

Related Terms

• Insurance
• Luxury
• Elite
• Top-tier
• Exclusive

Detailed Definition

Noun

• An amount to be paid for a contract of insurance.
• Example: "She pays a monthly premium for her medical insurance."

• A sum added to interest or wages; a bonus.
• Example: "Employees received a year-end premium for their hard work."

• The amount by which the price of a share or other security exceeds its issue price, its nominal value, or the value of the assets it represents.
• Example: "The stocks were trading at a premium."

• The amount by which the price of one form of bullion exceeds that of bullion of the same metal but in another form.
• Example: "Gold bars can sometimes fetch a premium over coins."

• Something given as a reward, prize, or incentive.
• Example: "The blender comes with a free jug as a premium."

• Denoting or relating to a commodity of superior quality and therefore a higher price.
• Example: "Premium gasoline has a higher octane rating."