What is buying insurance during in a game of poker?

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What is buying insurance during in a game of poker?

Postby ying90 » Mon Jul 22, 2013 3:28 am

Hi guys,

I very keen to know and how it works when people say " Want to buy insurance?" when ever there is an all-in and most of the time when the pot is kinda big. can anyone kind enough to explain to me what is it for and how does it work?
ying90
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Re: What is buying insurance during in a game of poker?

Postby Vinally » Mon Jul 22, 2013 12:04 pm

The insurance to avoid the bad beats. Example in situation, here,

1. During preflop / flop, both players are all in.
2. Player A is ahead of B, AA Vs KK. However, A is scared of bad beat, hence offering 10% or 15% of the total pots insurance.
3. Player C offer to take 15% insurance, and Player A collect 85% of total pot regardless of win or loss.
4. Player C, if AA lose, He will have to pay 85% of total pot.
5. Player C if AA win, He will win 15% of total pot.

It is how it work. Simple
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Re: What is buying insurance during in a game of poker?

Postby MRawesomeface » Mon Jul 22, 2013 9:16 pm

a more accurate way of explaining it is: u buy insurance to get your equity in the pot. in the aces vs kings example u have 80% equity, meaning a 20% chance of losing. the insurer will take a 5% premium, i.e total of 20+5=25%.
if u win the pot, u will pay him 25% of the pot.
if u lose the pot, your opponent will take 100% of the pot, and the insurer will pay u 80% of the pot from his own pocket
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