Premium can be defined as per follow:

1.     Shares:     The difference between the higher prices paid for a fixed-income security and the security’s face amount at issue.
2.    Insurance: The specified amount of payment required periodically by an insurer to provide coverage under a given insurance plan for a defined period of time. The premium is paid by the insured party to the insurer, and primarily compensates the insurer for bearing the risk of a payout should the insurance agreement’s coverage be required.