define premium - Search
  1. Dictionary

    pre·mi·um
    [ˈprēmēəm]
    noun
    premium (noun) · premiums (plural noun)
    1. an amount to be paid for an insurance policy.
    2. a sum added to an ordinary price or charge:
      "customers are reluctant to pay a premium for organic fruit"
      • a sum added to interest or wages; a bonus.
      • relating to or denoting a commodity or product of superior quality and therefore a higher price:
        "premium beers"
      • stock market
        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:
        "the fund has traded at a premium of 12%"
    3. something given as a reward, prize, or incentive:
      "the Society of Arts awarded him a premium"
    Origin
    early 17th century (in the sense ‘reward, prize’): from Latin praemium ‘booty, reward’, from prae ‘before’ + emere ‘buy, take’.
    Translate premium to
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    Similar and Opposite Words
    noun
    1. an amount to be paid for an insurance policy.
      insurance charge
      insurance payment
      regular payment
    2. a sum added to an ordinary price or charge:
      additional payment
      extra amount/charge
      additional fee
    3. something given as a reward, prize, or incentive:
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  2. People also ask
    What is insurance premium?The purchase price of an insurance policy or the regular payments required by an insurer to provide coverage for a defined period of time. The total cost to buy an option contract (often synonymous with its market price). Premium can mean a number of things in finance—including the cost to buy an insurance policy or an option.
    What is an example of a premium?a prize or bonus given, for example, when purchasing a product, as a way of increasing sales: The premium was a little gadget to hold your toothbrush. Business the amount paid in installments by a policyholder for coverage, as for insurance: Car insurance premiums have skyrocketed. great value: puts a high premium on loyalty.
    What is premium noun?Definition of premium noun from the Oxford Advanced Learner's Dictionary an amount of money that you pay once or regularly for an insurance policy Want to learn more? an extra payment added to the basic rate You have to pay a high premium for express delivery. A premium of 10 per cent is paid out after 20 years.
    What does premium mean in finance?Premium can mean a number of things in finance—including the cost to buy an insurance policy or an option. Premium is also the price of a bond or other security above its issuance price or intrinsic value. A bond might trade at a premium because its interest rate is higher than the current market interest rates.
     
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