Etymology : Latin praemium booty, profit, reward, from prae- + emere to take, buy; more at REDEEM
Pronunciation : prE-mE-&m
Function : noun
Date : 1601
1. supplementary charge, additional charge; amount paid for insurance; prize, reward; tuition. premium\pre"mi*um\ , n.; pl. premiums (#). [l. praemium, originally, what one has got before or better than others; prae before + emere to take, buy. see:
redeem.].
2. a reward or recompense; a prize to be won by being before another, or others, in a competition; reward or prize to be adjudged; a bounty; as, a premium for good behavior or scholarship, for discoveries, etc. to think it not the necessity, but the premium and privilege of life, to eat and sleep without any regard to glory. the law that obliges parishes to support the poor offers a premium for the encouragement of idleness.
3. something offered or given for the loan of money; bonus; -- sometimes synonymous with interest, but generally signifying a sum in addition to the capital. people were tempted to lend, by great premiums and large interest.
4. a sum of money paid to underwriters for insurance, or for undertaking to indemnify for losses of any kind.
5. a sum in advance of, or in addition to, the nominal or par value of anything; as, gold was at a premium; he sold his stock at a premium.premium having or reflecting superior quality or value; "premium gasoline at a premium price" n.
6. payment for insurance [syn: insurance premium].
7. a fee charged for exchanging currencies [syn: agio, agiotage, exchange premium].
8. payment or reward (esp from a government) for acts such as catching criminals or killing predatory animals or enlisting in the military [syn: bounty].
9. A reward or recompense; a prize to be won by being before another, or others, in a competition; reward or prize to be adjudged; a bounty; as, a premium for good behavior or scholarship, for discoveries, etc.
10. Something offered or given for the loan of money; bonus; sometimes synonymous with interest, but generally signifying a sum in addition to the capital.
11. A sum of money paid to underwriters for insurance, or for undertaking to indemnify for losses of any kind.
12. A sum in advance of, or in addition to, the nominal or par value of anything; as, gold was at a premium; he sold his stock at a premium. payment for insurance having or reflecting superior quality or value; "premium gasoline at a premium price".
13. 1. A premium is a sum of money that you pay regularly to an insurance company for an insurance policy. It is too early to say whether insurance premiums will be affected.
14. A premium is a sum of money that you have to pay for something in addition to the normal cost. Even if customers want `solutions', most are not willing to pay a premium for them Callers are charged a premium rate of 48p a minute.
15. Premium goods are of a higher than usual quality and are often expensive. the most popular premium ice cream in this country. = luxury.
16. If something is at a premium, it is wanted or needed, but is difficult to get or achieve. If space is at a premium, choose adaptable furniture that won't fill the room. = scarce.
17. If you buy or sell something at a premium, you buy or sell it at a higher price than usual, for example because it is in short supply. He eventually sold the shares back to the bank at a premium.
18. If you place a high premium on a quality or characteristic or put a high premium on it, you regard it as very important. I place a high premium on what someone is like as a person.