The amount at which a product or service is valued, over-and-above its intrinsic value. This will frequently be as a result of a premium brand image generated by marketing and pricing strategies. For example, a Gucci-branded handbag will sell at a premium price versus an identical handbag without the Gucci label. In investment terms, Premium refers to the amount at which a securities option is traded. In Insurance terms, a Premium is the amount paid monthly (or at another agreed interval) to ensure a policy remains active.