Read the dictionary definition of premium. All definitions for this word.
1. payment or reward (especially from a government) for acts such as catching criminals or killing predatory animals or enlisting in the military
2. a prize, bonus, or award given as an inducement to purchase products, enter competitions initiated by business interests, etc.
1. they encouraged customers with a premium for loyal patronage
3. payment for insurance
4. a fee charged for exchanging currencies
5. the amount that something in scarce supply is valued above its nominal value
1. they paid a premium for access to water
6. having or reflecting superior quality or value
1. premium gasoline at a premium price
