What does Insurance pays 2 to 1 or 3 to 2 mean in Blackjack?

Answer 1

Simply put, if the dealer has a 10, face, or ace showing (depending upon the casino) you have the option to take insurance on the dealer having a natural blackjack.

When you take insurance, you put down another bet. This lets the odds of 2:1 save your original bet IF you're correct (otherwise you have to play the hand just to make up your loss from taking insurance). If it's 3:2, then you recover half of your original bet (but again, if you lose, u have to win the hand to make up your insurance bet).

Here's an example:

Let's say you bet $100 on a hand and the dealer has a queen showing face up. Insurance is offered for 2:1 and you think (for whatever reason) that the dealer has a natural blackjack. You then bet another $100 on the side. If the dealer ends up with a blackjack, then you lose your 1st $100 bet, take back your insurance bet, and win $200 dollars. All and all you made $100 from the hand ($200 insurance winnings - $100 bet = $100 won).

Casino's offer insurance because it's usually wrong to take it ESPECIALLY if there is only one hand being played, if 6 decks are being used, and if they're reshuffling after every hand. Also, if a casino offered match odds (1:1) then the player wouldn't be able to win any money on the hand since he would win only $100 from insurance while losing the $100 from his original bet.