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premium - Meaning and Examples

Meaning of 'premium' (Webster Dictionary)

1 . Premium [ n.]
- 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.
- Something offered or given for the loan of money; bonus; -- sometimes synonymous with interest, but generally signifying a sum in addition to the capital.
- A sum of money paid to underwriters for insurance, or for undertaking to indemnify for losses of any kind.
- 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.

Meaning of 'premium' (Princeton's WordNet)

1 . premium [ n]
Meaning (1):
- a prize, bonus, or award given as an inducement to purchase products, enter competitions initiated by business interests, etc.
Example in sentence:
  • they encouraged customers with a premium for loyal patronage
Meaning (2):
- the amount that something in scarce supply is valued above its nominal value
Example in sentence:
  • they paid a premium for access to water
3 . premium [ s]
Meaning (3):
- having or reflecting superior quality or value
Example in sentence:
  • premium gasoline at a premium price

Nearby Words:

pre- preaccusation preace preach preached preacher preachership preachify preaching preachman

See 'premium' also in:

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Related Definitions

  • Market Risk Premium
    The Market Risk Premium is the return investors earn (or expect to receive) by investing in risky assets rather than risk-free assets on the market. This is the premium on market risk.
  • Premium or push money
    Additional compensation provided to salespeople to encourage them to sell all product.
  • Waiver-of-premium provision
    Waiver-of-premium provision refers benefit that can be added to a life insurance policy providing for waiver of all premiums coming due
  • Unearned premium reserve
    Unearned premium reserve allows liability reserve of an insurance company that represents the unearned part of gross premiums on all
  • Single-premium deferred annuity
    Single-premium deferred annuity is a retirement annuity that is purchased with a single premium with benefits to start at some future
  • Single-premium whole life insurance
    Single-premium whole life insurance is a whole life policy that provides lifetime protection with a single premium payment. Single-premium whole life insurance is a whole life policy that provides lifetime protection with a single premium payment.
  • Pure premium method of rating
    Pure premium method of rating is a rating system used in property and casualty insurance. The pure premium is determined by dividing the dollar amount of incurred losses and loss-adjustment expenses by
  • Net annual level premium (NALP)
    Net annual level premium (NALP) is an annual level premium for a life insurance policy with no expense loading. Mathematically equivalent
  • Gross premium
    Gross premium is an amount paid by the insured, consisting of the gross rate multiplied by the number of exposure units.
  • Flexible-premium annuity
    Flexible-premium annuity is an annuity contract that permits the owner to vary the size and frequency of premium payments. The amount of retirement income depends on the accumulated sum

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