premium

Definition

A premium is an amount of money you pay regularly for insurance, or it can mean an extra amount paid for something better or special. The word can also describe products or services that are higher in quality than usual.

Usage & Nuances

As a noun: common in insurance ('insurance premium'), and for extra charges or bonuses in business. As an adjective: informal for 'high-end' or 'exclusive' (premium coffee). Do not confuse with 'award' or 'prize' (which have different meanings). Often used in marketing to suggest higher quality.

Example Sentences