Insurance and Even Money in Blackjack

Question:  I never take insurance when I play blackjack and the dealer is showing an ace.  But when I have blackjack and the dealer has an ace showing, I always take even money.  I see many people doing the same thing as me, but sometimes people say that even money is just like taking insurance.  Who is right?

The short answer:  Taking even money is the same as taking insurance.

The long answer:  
Imagine that your initial bet was $10.  You get dealt blackjack, but the dealer's up-card is an ace.  Forgetting about "even money" for the moment, let's say that you decide to take full insurance of $5 (the maximum bet for insurance is half of your original blackjack wager).  If the dealer does indeed have blackjack, your original $10 wager will push, and your insurance bet gets paid 2 to 1, for a win of $10.  This is obviously a net win of $10.

If after taking insurance, the dealer does not have blackjack, you will lose your $5 insurance bet, but then get paid 3 to 2 (or 1.5x) your original wager... in this case a win of $15.  After you subtract your losses from the insurance bet, your net win here is also $10.

So no matter what happens, once you take full insurance, your net winnings will equal the amount of your original wager.  This is how the casino can offer you what's known as "even money".  So yes, if you take even money, you are essentially taking insurance.

Do you have a topic or question related to casino gaming that you'd like to see discussed on this blog?  Send me an email at FogOfGambling@gmail.com and let me know!