# premium

Pronunciation: say "PREE-mee-uhm" /ˈpɹiː.miː.əm/

## Adjective

1. Of superior quality, and higher in price or value than ordinary alternatives.
   - Simple: Of very high quality, and usually more expensive than the normal kind.
   - _The bakery uses premium ingredients sourced from small local farms._
   - _Customers who want premium service pay a higher monthly fee._
8. High-end, belonging to the market level that sits between mid-market and luxury.
   - Simple: Better and more costly than mid-range, but not quite 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._

## Noun

2. The sum paid, usually at regular intervals, to keep an insurance policy in force.
   - Simple: The money you pay regularly to keep an insurance plan active.
   - _The annual premium for flood coverage rose sharply this year._
   - _Drivers with a clean record often enjoy lower premiums._
3. An extra sum paid in addition to the normal or expected payment.
   - Simple: Extra money paid on top of the usual amount.
   - _Overtime hours earn a premium above the standard hourly rate._
   - _The contract included a premium for completing the work ahead of schedule._
4. An unusually high value attached to something, often because it is scarce or in demand.
   - Simple: A high value that something has, often because it is rare.
   - _Quiet office space is at a premium in the crowded downtown core._
   - _During the festival, hotel rooms command a premium._
5. A prize or award, especially one given as a reward for achievement.
   - Simple: A prize or reward given for winning or doing something well.
   - _The agricultural society awarded a premium to the finest breeding bull._
   - _Judges granted the young inventor a premium for his clever design._
6. An item offered free or at a reduced price to encourage the purchase of another product.
   - Simple: A cheap or free gift given to make you buy something else.
   - _The magazine offered a free tote bag as a premium for new subscribers._
   - _Manufacturers sometimes bundle a premium with each purchase to boost sales._
7. The amount by which a security's market value exceeds its face or par value.
   - Simple: The extra amount a bond or share sells for above its set 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._

## Origin

From the Latin word praemium, meaning "prize."

Source: DictionaryAI, https://dictionaryai.com/define/premium (written from Wiktionary data, CC BY-SA 4.0: https://creativecommons.org/licenses/by-sa/4.0/).