In the process of Texas Holdem, it often happens that players go all-in on the flop or turn. For example, if Player 1 has and Player 2 has , and the flop is , both players go all-in. Player 1 has a very high chance of winning as long as or is not dealt. Player 2 only has 2 outs to get a better hand than Player 1. To avoid being overtaken by Player 2 with a very low probability and losing the pot (i.e., a K on the turn or river), Player A can buy insurance to protect their earnings.
Insurance is a way for a third party to guarantee the player. After Player A buys insurance, if a K is not dealt, Player A normally takes the pot (minus some insurance fees). If a K is dealt, the insurance as a third party will compensate Player A with a certain amount, and Player B will take the pot as usual.
Note: When purchasing insurance, the insurance compensation is only valid for the next street card dealt, not the entire game. If Player 1 buys insurance on the flop, they are insuring against the turn card. If Player 1 is still ahead after the turn and Player 2 still has outs, Player 1 can choose to continue buying insurance, which would then be for the river card.
Important terms in insurance (OUTS) explained:
In the game, players usually refer to the cards that can give them a better hand as outs. In the example above, Player 2 has 2 outs against Player 1, which are and . Insurance is sold based on the likelihood of these outs appearing, with the odds determined by the number of outs. The more outs there are, the lower the odds.
When calculating outs, we need a basic understanding of Texas Holdem hand rankings.
Conditions for activating insurance:
The conditions for activating insurance are as follows and must be met simultaneously.
·The game is an insurance game, and the player has enabled the insurance purchase feature
·The player has gone all-in and revealed their cards, the community cards are not fully dealt, and the losing player has outs
·The number of outs does not exceed 14, and the pot involves no more than 3 players
Insurance odds:
The insurance odds are the payout multiples if the insurance hits, determined by the opponents outs.
Detailed odds table:
How is compensation calculated after purchasing insurance?
Player A and Player B each put 1000 into the pot and are all-in. Player A is ahead, and the opponent has 2 outs with 16x odds.
Example: Player A buys 100 in turn insurance. If the turn does not hit the outs, Player A buys 100 in river insurance. If the river also does not hit the outs, Player A takes the 2000 pot, minus 200 insurance cost, for a net gain of 1800.
Example: Player A buys 100 in turn insurance, and the turn hits the outs, making Player B ahead. Player B takes the 2000 pot, and the insurance pays Player A 1600 (100 x 16 odds).
Example: Player A buys 100 in turn insurance, and the turn does not hit the outs. Player A buys 100 in river insurance, and the river hits the outs. Player B takes the pot, and Player A gets the insurance payout. Details: Player B gets the 2000 pot, and A gets 1600 insurance payout, minus 100 turn insurance cost, for a net gain of 1500 (100 insurance x 16 odds - 100 insurance = 1500).
Detailed rules
Additional explanations about outs in insurance:
All cards that can give the player a better hand are called outs. The folded players hand cards are counted in the insurance outs. Cards that cause a split pot are not counted as insurance outs when both players are all-in.
Explanation of non-activation of insurance (for multi-way pots):
When the pot involves more than 3 players, insurance is not activated, regardless of whether its the main pot or a side pot. When purchasing insurance, the pot involves no more than 3 players.
Example:
Player A, 5000 chips, hand ; Player B, 20000 chips, hand ;
Player C, 10000 chips, hand ; Player D, 6000 chips, hand .
All 4 players go all-in on a flop of .
A. The main pot involves all 4 players, with a pot of 20000. Leading player D cannot purchase insurance for the main pot as it involves more than 3 players.
B. Side pot 1 involves Player B, Player C, and Player D, with a pot of 3000. Leading player D can purchase insurance for side pot 1.
C. Side pot 2 involves Player B and Player C, with a pot of 8000. Leading player B can purchase insurance for side pot 2.
Explanation of special conditions for insurance activation:
When players have equally strong hands and the community cards are not fully dealt, if one player has outs, insurance can be activated.
Example: Player A holds , Player B holds , with a flop of . Both players can activate insurance, A can buy insurance for three Js, and B can buy insurance for three Qs and two As.
Similarly, with on the board, if and both go all-in, both players can buy outs for all flush draws.
Special Rules for Purchasing Insurance:
Insurance cannot be purchased for the three flop cards. Turn insurance premiums must not exceed 0.25 times the pot, and river insurance premiums must not exceed 0.5 times the pot.
Explanation of River Backup Insurance:
If a player purchases turn insurance and it does not hit, then when purchasing river insurance, the player must purchase all OUTS, and the river insurance payout must be greater than or equal to the turn insurance premium (River insurance payout = River insurance premium * River insurance odds). We refer to this mandatory river insurance purchase as backup insurance. Supplementary Explanation: If a player purchases turn insurance and it does not hit, and the number of OUTS exceeds 14 on the river, the system will automatically purchase river insurance for the player. The river insurance premium = Turn insurance premium / River insurance odds
Operating Rules
Purchasing Insurance
(Break-even: Insurance payout = Amount already invested in the pot) Full pot (Insurance payout ≤ Pot)
Purchasing Multi-Pot Insurance
When there are multiple pots, each pot can be operated and purchased separately.
Display Rules
After purchasing insurance, the insurance amount will be displayed next to the players cards
After purchasing insurance, if the insurance hits, the insurance payout amount will be displayed next to the players cards.
