The Collaborative International Dictionary of English v.0.48:

Premium \Pre"mi*um\, n.; pl. Premiums. [L. praemium,
   originally, what one has got before or better than others;
   prae before + emere to take, buy. See Redeem.]
   1. A reward or recompense; a prize to be won by being before
      another, or others, in a competition; reward or prize to
      be adjudged; a bounty; as, a premium for good behavior or
      scholarship, for discoveries, etc.
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            To think it not the necessity, but the premium and
            privilege of life, to eat and sleep without any
            regard to glory.                      --Burke.
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            The law that obliges parishes to support the poor
            offers a premium for the encouragement of idleness.
                                                  --Franklin.
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   2. Something offered or given for the loan of money; bonus;
      -- sometimes synonymous with interest, but generally
      signifying a sum in addition to the capital.
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            People were tempted to lend, by great premiums and
            large interest.                       --Swift.
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   3. A sum of money paid to underwriters for insurance, or for
      undertaking to indemnify for losses of any kind.
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   4. A sum in advance of, or in addition to, the nominal or par
      value of anything; as, gold was at a premium; he sold his
      stock at a premium.
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