premium
/ˈpriːmɪəm
/noun (plural premiums)
1An amount to be paid for a contract of insurance.Correctly computed, the income of a wage earner entitled to a pension consists of his wages plus the amount of the premium he would have to pay to an insurance company for the acquisition of an equivalent claim....
- Non-group insurance is expensive: premiums and deductibles are higher and overall plan benefits are less generous than for group plans.
- In some parts of the country, insurance premiums have more than doubled.
Synonyms
insurance charge, insurance payment, regular payment, instalment
2A sum added to an ordinary price or charge: customers are reluctant to pay a premium for organic fruit...
- An indemnity bond is a premium charged by the lender and paid by the customer to insure the lender against a default in mortgage repayments by the borrower.
- Employers in the restaurant, bar and tourist trade have been particularly vocal in querying the provisions on tips, weekend premiums and service charges.
- Managers want to pay as small a premium to the market price as possible.
Synonyms
surcharge, additional payment, extra amount/charge, additional fee
2.1A sum added to interest or wages; a bonus.Much of the increase in the wage premium for education and skills is due to technological change that has increased demand for highly educated workers....
- American workers who use computers command a wage premium of 15% over workers who do not.
- In other words, the wage premium earned by the highly skilled is increasing.
2.2 [as modifier] Relating to or denoting a commodity of superior quality and therefore a higher price: premium lagers...
- In Aberdeen, the licensing board has proposed minimum drink prices in pubs of £1.75 for a pint of beer, cider, premium lager or cocktail.
- As technology sectors develop, advanced products carrying premium prices become commodities.
- She said: ‘These are top quality, premium products but we sell them at affordable prices.’
Synonyms
superior, premier, high-end, top-end, exclusive, elite, top, select, choice, deluxe, luxurious, classy, prime, first-rate, high-quality, top-quality, high-grade, five-star, fine, finest;
British upmarket;
North American upscale
2.3 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 shares jumped to a 70 per cent premium on the first day...
- The bankers who helped to launch the deal confidently predicted that the shares would trade a premium to net asset value.
- It is difficult to imagine the shareholders turning the deal down, since it represents a 16 per cent premium to the share price last month.
- A bid of €3 would represent a premium of over 50 per cent on where the company traded on Friday afternoon.
3Something given as a reward, prize, or incentive: the Society of Arts awarded him a premium...
- It took place originally in the Fair Field, Killarney on the afternoon after the morning show where the winners were selected and premiums awarded.
- The prize still dangles again this week with the additional premium at E3,200.
- He was awarded many premiums from officials of the T'ang Dynasty.
Synonyms
bonus, extra, percentage, perk, recompense, remuneration, prize, reward;
incentive, inducement
formal perquisite
historical bounty
Phrases
at a premium
put (or place) a premium on
Origin
Early 17th century (in the sense 'reward, prize'): from Latin praemium 'booty, reward', from prae 'before' + emere 'buy, take'.
pre-empt from mid 19th century:
It you pre-empt someone, you get there first. The original Latin came from prae ‘in advance’ and emere ‘buy’. Pre-emption (early 17th century) was the earliest form of the word, pre-empt being formed from it. The same root lies behind premium (early 17th century).