premium

Pluralpremiums, premia

1. 1
   adjective

   Of superior quality, and higher in price or value than ordinary alternatives.

   The bakery uses premium ingredients sourced from small local farms.

   Customers who want premium service pay a higher monthly fee.

   Similarsuperior, choice, high-end, deluxe, first-class

   Oppositebasic, standard, budget, inferior

2. 2
   nouncountable

   The sum paid, usually at regular intervals, to keep an insurance policy in force.

   The annual premium for flood coverage rose sharply this year.

   Drivers with a clean record often enjoy lower premiums.

   Note

   Insurance has its own two-way vocabulary. The premium is what the insured pays in, and the death benefit or claim is what comes back. Premiums track risk: when high-risk insureds cluster in one classification, the premiums charged rise to cover the losses. Both premiums and premia serve as plurals. The Latinate premia turns up in economic writing such as Michael P. Claudon's World Debt Crisis (1986).

3. 3
   nouncountable

   An extra sum paid in addition to the normal or expected payment.

   Overtime hours earn a premium above the standard hourly rate.

   The contract included a premium for completing the work ahead of schedule.

   Similarbonus, supplement, surcharge, extra

   Oppositediscount, deduction

   Note

   The extra need not be cash. Ariel Sabar, writing in The New York Times in 2009, describes grandparenthood "with its premium on uncomplicated gestures of generosity and love." The construction a premium on something means extra weight or reward placed on it. In that use it shades into the 'unusually high value' meaning, and the preposition on is what signals the figurative turn.

4. 4
   nouncountable

   An unusually high value attached to something, often because it is scarce or in demand.

   Quiet office space is at a premium in the crowded downtown core.

   During the festival, hotel rooms command a premium.

   Oppositediscount

5. 5
   nouncountable

   A prize or award, especially one given as a reward for achievement.

   The agricultural society awarded a premium to the finest breeding bull.

   Judges granted the young inventor a premium for his clever design.

   Similarprize, award, reward

   Note

   The meaning nearest the Latin is this one, since praemium meant "prize". English keeps the idea whole here: something given in recognition, as at an agricultural show or a competition. The money senses of the word, such as a bonus, an insurance payment, or a price above par, can each be read as a narrower case of something paid over and above.

6. 6
   nouncountable

   An item offered free or at a reduced price to encourage the purchase of another product.

   The magazine offered a free tote bag as a premium for new subscribers.

   Manufacturers sometimes bundle a premium with each purchase to boost sales.

   Similarfreebie, giveaway, bonus, incentive, gift

7. 7
   nouncountable

   The amount by which a security's market value exceeds its face or par value.

   The bond sold at a premium when market rates dropped below its coupon.

   Strong demand pushed the stock to a premium above its issue price.

   Oppositediscount

   Note

   Finance pairs the word with its opposite: a security above its face value trades at a premium, and one below it trades at a discount. For bonds, a premium usually signals that the coupon pays more than current market yields, so buyers bid the price up. When market rates fall, existing bonds tend to move to a premium.

8. 8
   adjective

   High-end, belonging to the market level that sits between mid-market and luxury.

   The automaker positioned its new SUV as a premium offering above the standard range.

   Buyers in the premium segment expect refined interiors and advanced technology.

   Similarhigh-end, upscale, upmarket

   Oppositebudget, economy, entry-level, mass-market

   Note

   In car-industry talk the word names a rung on a ladder rather than paying a compliment. A premium model sits above the mainstream range but stops short of outright luxury. That fixed middle position separates it from the general 'superior quality' sense, where premium simply means better and dearer. Here it works as a category label: the premium segment, alongside mid-market and luxury.

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