Definition

1. Noun:

   • A sum of money paid regularly to an insurance company for coverage: This is the regular payment made to maintain an insurance policy.
   • An extra payment or charge added to the basic rate or price: This refers to an additional cost, often for something superior, scarce, or in high demand.
   • A prize, bonus, or reward offered as an incentive: This is something given to encourage a particular action, such as buying a product or signing a contract.
   • High value or esteem: A state of being highly valued or in great demand.

2. Adjective:

   • Of superior quality or value: Describing something that is of a higher grade or standard than usual.

Examples of Usage

• Noun:

  • He pays a monthly premium for his health insurance.
  • Due to the drought, water is at a premium in the region.
  • The cereal box offered a free toy as a premium to attract buyers.
  • Honesty is at a premium in this organization.

• Adjective:

  • They sell premium coffee beans from single-origin farms.
  • The car comes with a premium sound system as standard.

Advanced Usage

• "at a premium": Being scarce and therefore highly valued; also, at a price above the nominal or usual value.

  • Office space in the city center is at a premium.
  • The bonds are selling at a premium.

• "to put a premium on something": To regard something as particularly valuable or important; to encourage or incentivize a particular quality or action.

  • This company puts a premium on innovation and creativity.
  • The new tax policy puts a premium on energy efficiency.

Variants and Related Words

• Premium-grade (adj): Of the highest quality available.
  • Premium-grade fuel is recommended for this engine.

Synonyms

• Noun: Bonus, reward, incentive, surcharge, fee, value.
• Adjective: High-grade, superior, top-tier, deluxe, choice.

Related Phrases

• Risk premium: The extra return expected by an investor for taking on additional risk.

  • The volatile stock carries a high risk premium.

• Premium bond: A government bond that offers no interest but enters the holder into periodic prize draws.

  • She invests in premium bonds for the chance to win a cash prize.

Related Idioms

• Pay a premium: To pay an extra high price for something.
  • Collectors are willing to pay a premium for a first-edition copy.

Adjective

1. having or reflecting superior quality or value
   • premium gasoline at a premium price

Noun

1. payment or reward (especially from a government) for acts such as catching criminals or killing predatory animals or enlisting in the military
2. a prize, bonus, or award given as an inducement to purchase products, enter competitions initiated by business interests, etc.
   • they encouraged customers with a premium for loyal patronage
3. a fee charged for exchanging currencies
4. the amount that something in scarce supply is valued above its nominal value
   • they paid a premium for access to water
5. payment for insurance