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REFERENCE

premium

n. · adj.
US //ˈpɹimiəm// UK //pɹˈiːmiəm// pre·mi·um
  1. 1 insurance cost (n.)
    B2 Upper Intermediate

    the amount of money you pay regularly for an insurance policy.

    the periodic payment made by an insured party to an underwriter for coverage.

    Example

    If you have a car accident, your monthly insurance premium might go up.

    Example

    The actuary calculated that the annual premium would need to increase by ten percent to cover the projected risks of the new policyholders.

    Usage

    Often used with 'monthly' or 'annual'.
  2. 2 extra value or cost (n.)
    C1 Advanced Formal Finance

    an extra amount of money added to the normal price.

    an amount paid in addition to the standard price or par value.

    Example

    During the busy holiday season, hotel rooms are often at a premium.

    Example

    Investors were willing to pay a significant premium for the shares, betting on the company's long-term growth potential despite current losses.

    Usage

    Commonly used in the phrase 'at a premium'.

    Teacher's tip

    When something is 'at a premium', it means it is rare and people are willing to pay more for it.
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  1. 3 high quality (adj.)
    B2 Upper Intermediate

    of very high quality or more expensive than usual.

    denoting a product or service of superior quality and higher price point than standard versions.

    Example

    The airline offers a premium service for passengers who want more legroom.

    Example

    The brand successfully repositioned itself in the premium market by using organic materials and artisanal manufacturing techniques.

    Usage

    Usually placed before the noun.
Origin

From Latin praemium (“prize”).

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