Insurance is an option in blackjack that allows you to make a side bet amounting to half of your initial bet in cases when the blackjack dealer has an up card of an Ace. If ever the dealer have a natural or blackjack after the hole card is revealed, then you will receive a payout of two to one from your insurance side bet but your initial bet will be taken because you lost your hand.
If the blackjack dealer don’t have a natural or blackjack, your insurance will be lost and there is still a chance that you will also lost your initial bet if the dealer’s hand has a higher hand value than yours.
When the dealer’s up card is an Ace and all the blackjack players cards are already dealt and every play moves of the players are being done with, then the dealer will plainly ask the players, “Insurance?” If a blackjack player chooses to make the side bet of insurance, then the player will have to put the bet on the appropriate betting area for insurance of the blackjack table layout.
When all the insurance bets are being made, the dealer will then reveal the hole card. If the blackjack dealer has a ten-value card like Jack, Queen, or King, then the blackjack game automatically ends. Those insurance bets will get paid and the dealer will remove the initial bets from the table.
There are instances that a player will have a natural or blackjack when the up card of the dealer is an Ace. When this happens, the dealer will offer the option of even money insurance. The even money insurance is also a side bet in blackjack that is pretty much the same as the insurance bet with regards to the final calculation whether the dealer’s hole card is a ten-value card or not.
For example: When a player makes an even money insurance bet even if his hand is a blackjack with an original bet of $20, and then the dealer also has a blackjack, the player will win the insurance bet. The payout will be $20 for the $10-insurance bet and the player’s original bet will be returned because the situation is a push. And now the player will have a net gain of earnings of $20.
But if the dealer don’t have a blackjack or natural hand, the player will lose the insurance bet of $10 but would get a payout of three to two for his blackjack hand which is $30, and this results to a net gain of $20. In summary for both situations of insurance bets, the insurance is equivalent to an even money payout in blackjack.
If you really feel that the hole card of the dealer is a ten-value card, then opting for the insurance is not bad at all.