Definitions:

1. a prize, bonus, or award given as an inducement to purchase products, enter competitions initiated by business interests, etc. noun
   • they encouraged customers with a premium for loyal patronage
2. having or reflecting superior quality or value adjective
   • premium gasoline at a premium price
3. the amount that something in scarce supply is valued above its nominal value noun
   • they paid a premium for access to water

Synonyms:

• agio
• agiotage
• bounty
• exchange premium
• insurance premium