premium - Dictionary Definition : Vocabulary.com

If your home or business is damaged by fire and you receive a payment from your insurance company, that payment's called a premium.

Premium comes straight out of Latin, meaning “reward.” You can also use premium as an adjective to describe something of better-than-usual quality. The premium honey goes to the beekeepers. If something's “at a premium” it's hard to find and therefore usually more expensive.

PRIMARY MEANINGS OF: premium

1	n	a prize, bonus, or award given as an inducement to purchase products, enter competitions initiated by business interests, etc.
2	adj n	having or reflecting superior quality or value the amount that something in scarce supply is valued above its nominal value

FULL DEFINITIONS OF: premium

1

n a prize, bonus, or award given as an inducement to purchase products, enter competitions initiated by business interests, etc.

“they encouraged customers with a premium for loyal patronage”

Type of:: award, prize
something given for victory or superiority in a contest or competition or for winning a lottery; bonus, incentive
an additional payment (or other remuneration) to employees as a means of increasing output

n payment or reward (especially from a government) for acts such as catching criminals or killing predatory animals or enlisting in the military

Synonyms:: bounty

Type of:: reward
payment made in return for a service rendered

n payment for insurance

Synonyms:: insurance premium

Type of:: payment
a sum of money paid or a claim discharged

n a fee charged for exchanging currencies

Synonyms:: agio, agiotage, exchange premium

Type of:: charge
the price charged for some article or service

2

adj having or reflecting superior quality or value

“premium gasoline at a premium price”

Synonyms: superior
of high or superior quality or performance

n the amount that something in scarce supply is valued above its nominal value

“they paid a premium for access to water”

Type of:: economic value, value
the amount (of money or goods or services) that is considered to be a fair equivalent for something else