Blackjack Dealer Insurance bets
What is a Blackjack Insurance bet offered by the Dealer?
When playing Blackjack and the casino's Dealer is dealt an upturned Ace you may be offered the option to make a Blackjack Insurance bet. If you accept the offer of Blackjack Insurance then you make this extra individual bet of half your original bet. The Dealer will check or peek at the other face down card to see if they have a natural Blackjack.
If the Dealer does have a Blackjack then those who took the Insurance bet will be paid out at the BJ Insurance pay out ratio. If the Dealer does not have Blackjack then those players who made the Insurance bet lose the Insurance bet money. A Blackjack Insurance bet is a player gambling that the Dealer DOES have Blackjack.
If you did not make the Insurance bet you will naturally lose the hand to the Dealers Blackjack. Unless you are playing a variation of Blackjack where you Push or even can win when you have been dealt a natural Blackjack and so has the Dealer.
If you are playing on a table with a number of other players then the dealer will ask all the players at the table if they wish to take the Casino's offer of an Insurance bet. If you are playing a multihanded Blackjack game then you will have to decide for each hand. If it is an online Blackjack multihanded game then there is usually an option to select yes or no for 'Insurance for all hands?'
Should you ever take the Blackjack Insurance bet?
Basic Blackjack Strategy implies that you should never take the Blackjack Insurance bet when it is offered by the Casino. Why does Blackjack Strategy suggest you should never take out Dealers Blackjack Insurance? Are there any times when you should consider taking the Blackjack Insurance bet?
The Insurance bet is half of your original bet. The normal payout ratio for the Blackjack Insurance bet is 2:1 on the Insurance bet, not the combined total of your original bet and the extra Insurance bet.
If you take out the Dealers BJ Insurance bet and he does have a BJ then you finish the hand evens. You lose your original bet but win on the Insurance bet. The Insurance bet is half your original bet but pays out at 2:1, so you win back your original bet.
Example of how you end up evens after taking out the Blackjack Insurance bet: Original bet = 10 Insurance = 5 Dealer has Blackjack, you lose your original bet of 10 but your Insurance bet of 5 is paid out at 2:1 (you win double the Insurance bet) so you win 10 from the Insurance bet If you make the Insurance bet and the Dealer does have a natural Blackjack then you win 10 but also lose 10.
Situations when you should consider taking the Blackjack Insurance bet
Although long term Basic Blackjack Strategy shows you should not make the Insurance bet there are certain hands or events you will face when you may want to consider deviating from basic Strategy. What situations in Blackjack should you think about taking the Insurance bet? One of them is if you made a large bet and been dealt Blackjack but then the Dealer shows the Ace.
Players natural Blackjack: if you take out the BJ Insurance bet then you will be exchanging a 3:2 or 6:5 (depending on the Casino's House Rules) for an even money bet. Long term this is not a good option as being dealt a natural Blackjack is how you win money at Blackjack. But what if you have a large sum of money involved, all your winnings for the night if it is the last hand and you have bet your profit on this hand? If you lose the hand then you will finish the night evens but if you take out insurance you won't win any more money but you will not lose your profit for the night.
The Insurance bet could be the difference between a great winning night and being able to tell your friends how much you won, or, a night that was great but ended up slightly tarnished as you stuck to your guns and stuck rigidly to the Blackjack Bible of Basic Blackjack Strategy.
Large bet: You have made a large bet that will substantially increase your Bankroll if you win but then disaster, the Dealer has been dealt an Ace and you have been dealt a stiff (total of 12-16). Although the Dealer does have an Ace it does not mean the Dealer has Blackjack but it obviously increases the chances.
Sometimes it may be worth the short term risk and ignoring the long term loss of EV by taking the Insurance bet. If the Dealer does not have Blackjack then you can still win the hand and money.
Last hand double up: It is the last hand of the night and the Big Player in you has come out, you make a larger than normal bet that is either all your profit for the night or a lot of your Bankroll, Either way if the Dealer wins the hand you are not in profit for the night. Would you take Dealers BJ Insurance or think long term? Maybe you want to go and play another game and want to use this money to Bankroll it? Sometimes the offer of Insurance may be the best short term option.
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