Insuring A Poker Hand

[The_Standard]

I've seen Hellmuth and a few others get insurance on NLHE hands when the money goes in preflop, flop, or turn. I never took the time to fully understand how they come to terms on a price. Who can give me a quick rundown of the basics of getting insurance in these types of spots?

Thanks you fucks.

[chinamaniac]

Many times when you're playing No-Limit Hold 'em a player will have all his money in the pot before or on the Flop (or even on Fourth St.). Since there are cards to come and since no more betting can take place (if it's a head?up situation), both players will generally turn their hands over so that Insurance can be considered.*
Insurance is a side-bet that's usually made between the two players involved in the pot or between one of the players involved and an Insurance Man who may or may not be an active player. The player with the hand having the best potential to win the pot is offered (or asks for) some Insurance. Taking Insurance is a way to protect your investment in the pot. But, it's always a bad bet (unless a mistake is made). As it is in life away from the Poker table, the Insurance Man won't be giving away anything. When he lays you a price on your hand ... he'll be getting the best of it. The price you'll be getting will always be considerably less than the true price your hand is worth. (See the Appendix and below.) The difference between the true price and the actual price the Insurance Man is willing to lay is his Vigorish (edge or Commission).
*There's no rule that says you must turn your hand over, but such a request is rarely (if over) refused.
I used the phrase "best potential to win the pot" because it's not always the best hand on the Flop that has the best winning potential. For example, if the Flop was 7c-5d-4d and you had the 7d-6d ... you'd be the favorite (about 2 1/3 to 1) over an opponent with a Pair of Kings (say, the Ks-Kh). You'd have 20 cards in the deck that could win for you with two shots to catch any one of them.*
I try not to take Insurance myself. I try to lay it because the best (potential) hand always has to take the worst of it. For example, if you're a 3 to 2 favorite ... well, the best you can usually get is 13 to 10 (or maybe 7 to 5). So why take it? That's the edge you're looking for to start with. If you take Insurance ... you're giving up your edge.
Through the years, I've heard a lot of discussion about whether you should or shouldn't take Insurance.
My advice is to lay the Insurance ... but don't take it.
You can't argue with mathematical facts when you have the best of something. If you can lay 7 to 5 on a 3 to 2 shot ... you should do it. But you shouldn't take 7 to 5 when you're a 3 to 2 favorite. It's that simple.
However, I can understand that if a man was on a short bankroll...well, perhaps then he should take Insurance. I guess it would be O.K. to take the worst of it so you could stay in action. But, if your bankroll warrants it ... don't take Insurance - lay it.
I used to talk about a related subject with a very big (and very successful) gambler I've known for many years. He said "if a man came in and offered to lay me 10 to 1 on the flip of a coin for all the money I had in the world ... I WOULDN'T take it." He said he just couldn't liquidate everything he's got - all of his property and his cash. He wouldn't risk losing it all. It would be over a million dollars. He wouldn't do it even if he thought he could get hold of another million.
*Your Straight-Flush draw gives you 15 wins and you have five more wins with the 3-Sixes and 2-Sevens that are still In the dock. Of course, the assumption here Is that your opponent's hand doesn't improve.
But, I'd do it. I surely would. I'd just have to. I couldn't pass up the opportunity to take 10 to 1 on an even?money shot. I'd do it because I have enough confidence in myself that I'd be able to come up with another million if I lost.