Blackjack Insurance
If the dealer's upcard is an ace, the player is offered the option of taking Insurance before the dealer checks his or her hole card.
Insurance is a side bet of up to half the original bet placed on a special portion of the table usually marked Insurance Pays 2 to 1. This side bet is offered only when the dealer's exposed card is an ace. The idea is that the dealer's second card has a fairly high probability to being a 10 card, giving the dealer a blackjack and a loss for the player. It is attractive for the player to insure against this possibility by making an insurance bet, which pays 2 to 1 if the dealer has a blackjack, in which case the insurance proceeds will make up for the concomitant loss on the original bet. The insurance bet is lost if the dealer does not have blackjack, although the player can still win or lose on the original bet.
Insurance is a poor bet for the player unless he is counting cards, because statistically the dealer probably doesn't have blackjack.
A player who is counting cards can keep count of the remaining tens in the shoe, and use it to make insurance bets only when he has an edge . Also, in a multi hand single deck blackjack game, it is possible for insurance to be a good bet simply by observing the other cards on the table - if the dealer has an Ace, then there are 51 cards left in the deck, of which 16 are tens. However, if there are as few as 2 players playing, and none of their two initial cards are tens, then that means that 16 out of 47 remaining cards, are ten - better than 1 in 3, and so the insurance bet is a good one.
When the player has blackjack and the dealer has an ace, the insurance bet may be offered as even money, meaning that the player's blackjack is paid immediately at 1:1 before checking the dealer's hand. Even money is just a way of expressing the actual payout on the insurance bet, given that the player has blackjack, it is not a different bet, and taking even money is generally even worse than average, because one of the player's two cards is tens, so the proportion of tens remaining in the deck is lower.
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