Premium definition: Copy, customize, and use instantly
Introduction
The term "Premium" generally refers to an additional amount of money paid, typically above a standard rate or fee, for goods, services, or insurance coverage. It is often used in financial and insurance contracts, reflecting extra charges for added benefits or superior offerings. Premiums can be associated with various contexts such as insurance policies, bond investments, and luxury goods. This term is important in agreements to clarify the exact cost for enhanced or specialized products, services, or risk coverage.
Below are various examples of how "Premium" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Premium" in insurance agreements
This definition ties "Premium" to the payment of insurance coverage.
"Premium" means the amount paid by the policyholder to the insurance company in exchange for coverage under the insurance policy, paid either in lump sums or installments, as agreed in the terms of the policy.
Definition of "Premium" in bond agreements
This definition connects "Premium" to bond investments.
"Premium" refers to the amount by which the price of a bond exceeds its par or face value, often due to the bond offering a higher interest rate compared to current market rates.
Definition of "Premium" in loan agreements
This definition applies "Premium" to loans and financing.
"Premium" means an additional fee charged on top of the principal loan amount, such as an interest rate premium, for special financing terms or conditions granted by the lender.
Definition of "Premium" in credit agreements
This definition links "Premium" to credit terms.
"Premium" refers to an extra amount charged by the lender, above the standard interest rate, for offering credit under special conditions, such as high-risk lending.
Definition of "Premium" in real estate transactions
This definition ties "Premium" to real estate pricing.
"Premium" means the amount added to the base price of a property due to its location, unique features, or market conditions, reflecting its perceived value.
Definition of "Premium" in employee compensation
This definition connects "Premium" to employee benefits.
"Premium" refers to an additional amount paid to an employee for working under special conditions, such as overtime, holidays, or hazardous work environments, as part of their compensation package.
Definition of "Premium" in financial products
This definition applies "Premium" to financial contracts.
"Premium" means the cost of a financial product, such as a derivative, option, or other investment vehicle, typically paid upfront to secure the right to execute the agreement under specific terms.
Definition of "Premium" in marketing and advertising
This definition links "Premium" to promotional products.
"Premium" refers to a promotional item or bonus provided to customers as an incentive for making a purchase, subscribing, or engaging with a service.
Definition of "Premium" in insurance policy sdjustments
This definition connects "Premium" to changes in policy terms.
"Premium" means the amount paid for an insurance policy, which may be adjusted based on factors such as the insured’s risk profile, claims history, or changes in coverage options.
Definition of "Premium" in subscription services
This definition applies "Premium" to subscription models.
"Premium" refers to a subscription fee paid for access to enhanced or additional features that are not available in the basic plan, typically in a service or software offering.
Definition of "Premium" in health plans
This definition ties "Premium" to healthcare coverage.
"Premium" means the monthly or annual amount paid by an individual or employer to maintain coverage under a health insurance policy, often determined by the level of coverage selected.
Definition of "Premium" in auto insurance
This definition connects "Premium" to car insurance policies.
"Premium" refers to the amount paid for auto insurance coverage, calculated based on factors like vehicle type, driver history, and coverage limits.
Definition of "Premium" in travel insurance
This definition links "Premium" to travel coverage.
"Premium" means the amount paid for travel insurance, which covers various risks during travel, including medical emergencies, trip cancellations, and lost luggage.
Definition of "Premium" in homeowners insurance
This definition applies "Premium" to home insurance policies.
"Premium" refers to the amount a homeowner pays for insurance coverage, which can vary based on the value of the home, coverage levels, and deductible amounts.
Definition of "Premium" in pet insurance
This definition connects "Premium" to pet insurance policies.
"Premium" means the regular payment made for pet insurance, ensuring coverage for veterinary expenses, emergencies, and other related costs.
Definition of "Premium" in life insurance
This definition ties "Premium" to life insurance contracts.
"Premium" refers to the periodic payment made by the policyholder to the insurance company to maintain the life insurance coverage, often based on the insured's age, health, and coverage type.
Definition of "Premium" in warranty contracts
This definition links "Premium" to warranty agreements.
"Premium" means the extra cost paid for an extended warranty or additional coverage options that exceed the standard product warranty.
Definition of "Premium" in franchise agreements
This definition applies "Premium" to franchise relationships.
"Premium" refers to the upfront fee or royalty percentage paid by a franchisee to the franchisor for the right to operate under the brand, including initial support and training services.
Definition of "Premium" in subscription-based software
This definition connects "Premium" to software services.
"Premium" means the upgraded tier of a subscription service, which grants access to additional features, resources, or support beyond the standard version.
Definition of "Premium" in corporate bonds
This definition ties "Premium" to corporate bond pricing.
"Premium" refers to the amount by which the price of a corporate bond exceeds its face value, reflecting investor demand for bonds offering higher yields than those available in the current market.
Definition of "Premium" in mutual fund Iinvestments
This definition links "Premium" to mutual fund shares.
"Premium" means the price paid by investors for purchasing shares in a mutual fund, which can be above the net asset value (NAV) if demand for the fund is high.
Definition of "Premium" in insurance claim settlements
This definition applies "Premium" to claims payouts.
"Premium" refers to the increased payout amount in an insurance claim settlement, often related to policy riders or coverage extensions.
Definition of "Premium" in private equity agreements
This definition connects "Premium" to private equity transactions.
"Premium" means the additional value or amount paid for shares or equity investments in a company, reflecting growth potential or future earnings potential.
Definition of "Premium" in commodity trading
This definition ties "Premium" to commodity pricing.
"Premium" refers to the price paid for a commodity that exceeds the market price due to higher demand, rarity, or added value, often in industries like metals or agriculture.
Definition of "Premium" in insurance renewals
This definition links "Premium" to policy renewals.
"Premium" means the amount paid to renew an insurance policy after the initial term expires, which may vary depending on claims history or changes in coverage.
Definition of "Premium" in fixed-income securities
This definition applies "Premium" to fixed-income markets.
"Premium" refers to the amount above the par value that an investor pays when purchasing a fixed-income security, such as a bond, with a higher yield than prevailing interest rates.
Definition of "Premium" in venture capital
This definition ties "Premium" to venture capital investments.
"Premium" means the amount paid for a stake in a company during a venture capital investment round, which may reflect the company’s growth prospects and market positioning.
Definition of "Premium" in property taxation
This definition connects "Premium" to real property taxes.
"Premium" refers to an additional fee paid for premium property services or improvements beyond the standard tax obligations, often in luxury or high-value estates.
Definition of "Premium" in membership programs
This definition applies "Premium" to club or loyalty programs.
"Premium" means the higher-tier membership level in a club or loyalty program, often requiring a higher fee but providing additional benefits or exclusive access to services.
Definition of "Premium" in lease agreements
This definition links "Premium" to leasing terms.
"Premium" refers to the extra charge for a premium lease, which may offer better terms, locations, or conditions compared to standard leases.
Definition of "Premium" in import/export contracts
This definition ties "Premium" to international trade agreements.
"Premium" refers to an additional cost charged on imported or exported goods, often due to shipping conditions, customs, or high-demand items.
Definition of "Premium" in advertising campaigns
This definition connects "Premium" to marketing efforts.
"Premium" refers to the additional budget or fee spent to achieve a more extensive or higher-quality advertising campaign, ensuring wider reach or superior content creation.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.