Premium

Business / Taxes / Premium: A premium is the purchase price of an insurance policy or an annuity contract. You may pay the premium as a single lump sum, in regular monthly or quarterly installments, or in some cases on a flexible schedule over the term of the policy or contract. When you pay over time, the premium may be fixed for the life of the policy, assuming the coverage remains the same. That’s the case with many permanent life insurance policies. With other types of coverage, the premium changes as you grow older or as costs for the issuing company increase. Used in another sense, the term premium refers to the amount above face value that you pay to buy, or you receive from selling, an investment. For example, a corporate bond with a par value of $1,000 with a market price of $1,050 is selling at a $50 premium.

Other Words for Premium

Premium Verb Synonyms: incentive, inducement, stimulus, incitement, lure, bait, spur, goad, reward, come-on, freebie
Premium Noun Synonyms: bonus, extra, dividend, prize, award, reward, perquisite
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Insurance Premium

Business / Finance / Insurance Premium: A contract detailing an insurance policy and outlining what risks are insured, what insurance premiums are to be paid by the policyholder, what deductibles prevail, and all the details associated with MORE

Premium Wines

Life Style / Wine / Premium Wines: A subjective term to describe a higher quality classification of wine above every day drinking table wines. While premium wines maybe very expensive there is no set price point that distinguishes when MORE

Risk Premium

Business / Finance / Risk Premium: The reward for holding the risky equity market portfolio rather than the risk-free asset. The spread between Treasury and non-Treasury bonds of comparable maturity. MORE

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