Premiums
ˈpriːmiəmz
Definitions
2 meaningsA regular payment made to an insurance company or a fee paid to obtain something of value.
ˈpriːmiəmz
A payment made for insurance.
We pay our health insurance premiums every month.
💡 Simply: It's like the money you pay each month to have insurance, like health or car insurance. It's what you pay to be protected. Or it could be a little extra money you might pay for something extra nice, like a special kind of coffee or a better seat at a concert.
👶 For kids: It's like money you give so you can have something. Like, if you have a toy, the store wants a premium (money) to buy it.
More Examples
The car insurance premiums have increased this year.
The company offers a discount on premiums if you bundle your policies.
Higher premiums reflect the growing risk of climate change.
How It's Used
"The insurance company charges monthly premiums."
"Rising premiums are a concern for many homeowners."
An amount paid or charged above the usual price or value. A sum offered or paid in addition to the usual price.
ˈpriːmiəmz
A bonus or extra payment or reward.
The company offered a premium to employees who worked overtime.
💡 Simply: It's like getting a little extra bonus or something special because you earned it or it's something really nice. Like, you might pay a premium for a really fancy piece of jewelry or a very nice hotel room.
👶 For kids: It's like a special reward for doing something good, like getting extra candy.
More Examples
The collector paid a premium for the rare stamp.
The artist's work commanded premium prices at the auction.
Customers are willing to pay a premium for organic products.
How It's Used
"Employees received premiums for exceeding their sales targets."
"The antique sold for a premium price."
Synonyms & Antonyms
From Latin *praemium* 'reward, prize, distinction'. It developed into a payment made for insurance or goods sold above their face value.
Used since the 17th century, originally referring to a reward or bounty.
Memory tip
Think of a *premium* as the price you pay for peace of mind (insurance) or access to something special.
Word Origin
"reward, prize"