Insurance What is a Premium? Premium[pree-mee-uh m]noun1.A Premium is the payment made to the insurance company, either monthly or in a lump sum, to purchase insurance. The Premium does not include other costs like copays or deductibles. Have A Question About This Topic? Name Email Address Message Thank you! Oops! Want to be Smarter With Your Money? Join our mailing list and get news and info to support your financial goals. First Name Last Name Email Address Thank you! Oops!