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Practice Matters

Insurance is a side bet

Insurance is a side bet that the dealer has blackjack and is treated independently of the main stand. It pays 2:1 (meaning that the holdem player receives two dollars for every dollar bet) and is available when the dealer's exposed card is an ace. The idea is that the dealer's second card has a fairly high probability (nearly one-third) to be ten-valued, giving the dealer blackjack and disappointment for the holdem player. It is attractive (although not necessarily wise) for the holdem player to insure against the possibility of a dealer blackjack by making a maximum "insurance" bet, in which case the "insurance proceeds" will make up for the concomitant loss on the original bet. The holdem player may add up to half the value of their original bet to the insurance and these extra chips are placed on a portion of the table usually marked "Insurance pays 2 to 1".

Players with a blackjack

Players with a blackjack may also take insurance, and in taking maximum insurance they commit themselves to winning an amount exactly equal to their main stand, regardless of the dealer's outcome. Fully insuring a blackjack against blackjack is thus referred to as "taking even money", and paid out immediately, before the dealer's hand is resolved; the online players do not need to place more chips for the insurance stand.

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