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Premium

nounA regular sum paid for an insurance policy, or an extra amount paid above the normal price.

How to spell premium

premium

7 letters · 3 syllables

How to pronounce premium

American pronunciation
PREE-mee-uhm
/ˈprimiəm/

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What does premium mean?

  1. nounA regular sum paid for an insurance policy, or an extra amount paid above the normal price.
  2. adjectiveOf superior quality and sold at a higher price than ordinary versions.

Premium in a sentence

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Where does premium come from?

Language of origin: Latin

This word comes straight from the Latin praemium, which meant a reward, prize, or profit set aside for someone. That noun was built from prae-, meaning 'before' or 'ahead', combined with emere, the verb 'to buy' or 'to take', so the literal idea was something taken or claimed in advance, a bonus earned over and above the ordinary. English adopted it in the early 1600s, at first meaning a reward or a bounty, and the financial senses followed quickly: the regular sum paid to keep an insurance policy in force, and any extra amount paid above the standard price. From there the adjective sense grew, describing goods so good they command that higher price. The same emere root, 'to buy', also hides inside 'exempt' and 'redeem', and the kept Latin -ium ending is why the word finishes in -ium rather than the more English-looking -eum.

How the word is built

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