premium
- 01 B2 Upper Intermediate
n.the amount of money you pay regularly for an insurance policy.
n.the periodic payment made by an insured party to an underwriter for coverage.
Simple“If you have a car accident, your monthly insurance premium might go up.”
In context“The actuary calculated that the annual premium would need to increase by ten percent to cover the projected risks of the new policyholders.”
UsageOften used with 'monthly' or 'annual'.
- 02 C1 Advanced
n.an extra amount of money added to the normal price.
n.an amount paid in addition to the standard price or par value.
Simple“During the busy holiday season, hotel rooms are often at a premium.”
In context“Investors were willing to pay a significant premium for the shares, betting on the company's long-term growth potential despite current losses.”
UsageCommonly used in the phrase 'at a premium'.
Teacher's tipWhen something is 'at a premium', it means it is rare and people are willing to pay more for it.
- 03 B2 Upper Intermediate
adj.of very high quality or more expensive than usual.
adj.denoting a product or service of superior quality and higher price point than standard versions.
Simple“The airline offers a premium service for passengers who want more legroom.”
In context“The brand successfully repositioned itself in the premium market by using organic materials and artisanal manufacturing techniques.”
UsageUsually placed before the noun.
Usage premium account
“The RAC says this can bring your premium down, but warns it can also do the opposite.”
“Earlier this month in the US, Starbucks CEO Brian Niccol came under fire for suggesting a "$9 [£6.68] experience" at one of his outlets was a "really affordable premium experience".”
From Latin praemium (“prize”).
Etymology adapted from Wiktionary, available under CC BY-SA 4.0.