Financial Dictionary.
This is a browseable and searchable reference tool for terminology
relating to UK-based personal finance and financial products.
You can browse alphabetically, or search for a specific term.
Premium
Definition: The monetary amount of contributions (which can be monthly, annually or single) that are made into an insurance, investment, or pension contract by the policyholder. The term 'premiums' is generally used to define payments into contracts where the benefits are not tangible or immediately realisable. Another definition of 'premium' is used in the context of Investment Trusts, when share price of a specific trust is trading at a higher price than the value of its underlying assets (i.e. its investment holdings).
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