Insurance is a type of side bet used in blackjack. This type of bet is only available if the croupier’s face-up card is an ace. If the players are suspecting that the dealer is holding a blackjack, they can then place a side bet in addition to their initial wager, which is half of the initial wager.
Naturally, if the dealer is holding a natural blackjack, that means you’ll lose. However, if you have placed the insurance bet, you will still win some portion of your money back, which is enough to break even.
Therefore, since this type of bet ensures that you aren’t losing any money if the dealer has a natural blackjack, it is referred to as the insurance bet.
Keep in mind that if the dealer doesn’t have a natural blackjack, you will lose your insurance bet and potentially your initial wager as well.