Definition Definition

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