Premium (Noun)

Meaning ¹

Payment for insurance.

Classification

Nouns denoting possession and transfer of possession.

Examples

• The monthly premium for her health insurance was deducted automatically from her paycheck.
• The company's profits increased after they raised the premium rates for their policyholders.
• To qualify for the lowest premium, drivers must have a clean driving record and be at least 25 years old.
• The premium for flood insurance is usually higher for homes located in high-risk areas.
• The employee was surprised to learn that the company would cover 80% of her premium for life insurance.

Synonyms

• Insurance Premium

Meaning ²

A fee charged for exchanging currencies.

Classification

Nouns denoting possession and transfer of possession.

Examples

• The bank charged a premium for exchanging dollars to euros at the airport.
• The currency exchange office added a premium to the wholesale rate, making it more expensive for customers.
• When exchanging large amounts of money, the premium can add up quickly.
• The online currency exchange service offered a lower premium than traditional banks.
• The premium for exchanging currencies at the hotel was significantly higher than at the local bank.

Synonyms

• Agio
• Exchange Premium
• Agiotage

Hypernyms

• Charge

Meaning ³

The amount that something in scarce supply is valued above its nominal value; "they paid a premium for access to water".

Classification

Nouns denoting possession and transfer of possession.

Examples

• They paid a premium for the exclusive use of the private beach.
• The company had to pay a premium for the rare earth minerals needed for their electronics.
• Due to high demand, the tickets for the concert were selling at a premium.
• The limited edition sneakers were selling at a premium on the resale market.
• The residents of the drought-stricken area had to pay a premium for every liter of water.

Hypernyms

• Economic Value

Meaning ⁴

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".

Classification

Nouns denoting possession and transfer of possession.

Examples

• The company offered a premium to customers who referred their friends to the new restaurant.
• The cereal box contained a premium sticker that could be redeemed for a free toy.
• The insurance company provided a premium to policyholders who had a clean driving record.
• The credit card company offered a premium reward to customers who spent a certain amount within the first few months.
• The mail-order company included a premium gift with every purchase over a certain amount.

Hypernyms

• Award
• Incentive

Meaning ⁵

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

Classification

Nouns denoting possession and transfer of possession.

Examples

• The government offered a premium to anyone who could provide information leading to the capture of the notorious fugitive.
• A premium was paid to the farmer for every wolf he killed that was threatening his livestock.
• The military offered a premium to new recruits who enlisted for a minimum of four years.
• A premium was awarded to the brave citizen who had foiled the bank robbery attempt.
• The authorities placed a premium on the head of the escaped convict, offering a large sum of money for his capture.

Synonyms

• Bounty

Hypernyms

• Reward