For Premium we have terms and definitions in 29 topics. The topics are Accounting, Accounting Terms, Advertising, Auto Insurance, Automotive, Car Insurance, Construction, Customs, Direct Mail, Direct Marketing, Employee Benefits, Family Health, Finance, Health Care, Health Insurance, Housing, IPO, Insurance, International Business, Medical Malpractice Insurance, Nursing Home Abuse, Options, Real Estate, Real Estate Appraisal, Securities, Sports Collectibles, Tax, Treasury and Uk Power.

Premium (Accounting)

(1) Excess amount paid for a BOND over its face amount. (2) In insurance, the cost of specified coverage for a designated period of time.

Premium (Accounting Terms)

(1) Excess amount paid for a BOND over its face amount. (2) In insurance, the cost of specified coverage for a designated period of time.

Premium (Advertising)

Something offered for "free" or at a reduced price as an inducement to buy something else. Examples: "Buy a timeshare condo and receive a free television"… "Open a checking account and get a new toaster."

Premium (Auto Insurance)

The single or regular payment made to an insurance company in respect of a policy.

Premium (Automotive)

The periodic payment to keep the policy enforced.

Premium (Car Insurance)

The single or regular payment made to an insurance company in respect of a policy.

Premium (Construction)

Amount payable on a loan.

Premium (Customs)

A regular payment paid for an insurance policy that provides protection against a risk.
See also: Insurance,

Premium (Direct Mail)

A free gift sent to a potential customer either with the mail piece (front-end) or after the prospect has responded (back-end).

Premium (Direct Marketing)

A free gift offered to a prospect to induce a greater response to the main product or service that is being sold. A premium need not bear any relationship to the product being offered.

Premium (Employee Benefits)

The total monthly cost of insurance coverage.

Premium (Family Health)

The monthly charges due which the insured or the insured’s group must pay to maintain coverage.

Premium (Finance)

(1) A bond sold above its par value. (2) The price of an option contract; also, in futures trading, the amount by which the futures price exceeds the price of the spot commodity. For convertibles, amount by which the price of a convertible exceeds parity, and is usually expressed as a percentage. If a stock is trading at $45, and the bond convertible at $50 is trading at 105, the premium is $15, or 16.66% (15/90). If the premium is high, the bond trades like any fixed income bond; if low, like a stock. See: Gross parity, net parity. For futures, excess of fair value of future over the spot index, which in theory will equal the Treasury bill yield for the period to expiration minus the expected dividend yield until the future's expiration. For options, price of an option in the open market (sometimes refers to the portion of the price that exceeds parity). For straight equity, price higher than that of the last sale or inside market. Related: Inverted market premium payback period. Also called break-even time; the time it takes to recover the premium per share of a convertible security.

Premium (Health Care)

Prospectively determined rate for insurance coverage for specific health benefits. Generally, a health insurance plan will have different premium rates for single subscribers, married subscribers and for subscribers with dependants.

Premium (Health Insurance)

The amount of money a policyholder pays for insurance protection. The amount is deemed necessary to pay current losses, to set aside reserves for anticipated losses, and to pay expenses and taxes necessary to operate the company during the time period for which the policies are in force. Premiums allow the company to generate a reasonable profit that reinforces future solvency and contributes to the company’s growth. In the case of a reciprocal insurer, the premiums allow the company to offer insurance to new applicants without the need for additional capital contributions.The amount of money a policyholder pays for insurance protection. The amount is deemed necessary to pay current losses, to set aside reserves for anticipated losses, and to pay expenses and taxes necessary to operate the company during the time period for which the policies are in force. Premiums allow the company to generate a reasonable profit that reinforces future solvency and contributes to the company’s growth. In the case of a reciprocal insurer, the premiums allow the company to offer insurance to new applicants without the need for additional capital contributions.

Premium (Housing)

An amount paid on a regular schedule by a policyholder that maintains insurance coverage.

Premium (IPO)

In a perfect world, IPOs are designed to be priced at a discount to existing publicly traded companies. In theory, this is meant to reward early investors for buying an unseasoned company with no public track record. In reality, it is the lead manager's educated estimate on the highest price at which there will be solid demand for the IPO, both on the offering and in the aftermarket. The difference between the IPO price and its opening price is called the premium. Some investors think the difference between the IPO price and the price at the first day's close is a better measurement of the IPO premium due to the confusion that normally surrounds balancing buy and sell orders at the opening.

Premium (Insurance)

(1) Part of the consideration for the insurance, by whatever name called. (2) The periodic payment made to keep a policy in force. Premium and rate are sometimes incorrectly used interchangeably. Technically, rate is the amount charged for a given unit of insurance coverage, and premium is the sum of the unit rates for a given policy. (3) In annuities, the purchase payment.

Premium (International Business)

If a bond is selling above its face value, it is said to sell at a premium.

Premium (Medical Malpractice Insurance)

The amount of money a policyholder pays for insurance protection. The amount is deemed necessary to pay current losses, to set aside reserves for anticipated losses, and to pay expenses and taxes necessary to operate the company during the time period for which the policies are in force. Premiums allow the company to generate a reasonable profit that reinforces future solvency and contributes to the company's growth. In the case of a reciprocal insurer, the premiums allow the company to offer insurance to new applicants without the need for additional capital contributions.

Premium (Nursing Home Abuse)

Monthly payment for health-care coverage to Medicare, an insurance company, or a health-care plan.

Premium (Options)

The price of an option contract, determined in the competitive marketplace, which the buyer of the option pays to the option writer for the rights conveyed by the option contract.

Premium (Real Estate)

Money paid for an insurance policy. The opposite of a discount.

Premium (Real Estate Appraisal)

The amount payable for an insurance policy.

Premium (Securities)

The amount the buyer of an option pays a writer of the option. Also, the amount by which the current market price for a preferred stock or bond is higher than par or face value.

Premium (Sports Collectibles)

An item issued as an advertising extra. In most cases, collectors have had to send away to the companies or manufacturers to receive a "premium".

Premium (Tax)

An amount paid for insurance.

Premium (Treasury)

The amount by which the auction price of a Note or Bond is higher than its face value.

Premium (Uk Power)

The price paid by the option holder to the option grantor

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