Premium

Premium can be used in various situations with different meanings. It can go easily with finance terms and also with some products and services in totally different contexts. Some of them are listed here:

  • A premium can be a higher price, bonus, gift, perk or anything given as an incentive, so as to encourage the purchase of the products or enhance the productivity of the services/employees.
  • In context of insurance, a premium is the amount paid or to be paid by the policy holder against the coverage given by the insurance company.
  • In economics, a premium can be the excess value of one form of money over another of the same nominal value or it can be a higher value of a house because of the short supply of houses in a particular area.
  • In stock market, a premium can be the amount paid to the seller of a call or put option by the buyer.
  • In general, a premium can be an exceptional quality, a greater value or superiority than others of its kind such as a wine made of premium grapes.

    • Premium is mostly used and associated with financial terms, but the use of this word is diversified in different areas. In fact, we see in our routine, variety of services and products showcasing the same word "PREMIUM" on them and most of the time placing them higher value than the normal range. Higher value here is regarded to "the quality as well as the price". Find here some premium products and services and their distinction with the normal range: