The article may contain affiliate links from partners. The words, opinions, and reviews are our own. Learn how we make money to support our financial wellness mission.
Premium is defined as the amount paid by an individual for a policy or for a price above amount.
Premium Explained
With stocks and bonds, the premium is the difference between the par amount and the price of marketable security, when the price is greater than the par amount. A premium is the opposite of a discount.
With insurance policies, it’s the amount paid by an insured to an insurance company to obtain or maintain an insurance policy.
