At this point all the players have two cards. If the dealer does not have a BlackJack, the side bet is lost and the hand is played normally. If you are not counting cards, don't bother with insurance. The proper Basic Strategy play is to decline. The time to take insurance is when the number of non-tens to tens drops below a 2 to 1 margin since insurance pays 2 to 1.
Early surrender allows players to quit two-card hands after seeing the up card of the dealer.
Late surrender is the same as early except that the player must wait until the dealer checks for a BlackJack. If a players hand totals 12 through 16, and the dealer is showing a 7,8,9,10 or Ace, the player should TAKE a card. When the dealer is showing a 3,4,5 or 6, this is known as a bust card. If you have a 12-20 against a dealers bust card, you should not take a card, and let the dealer bust. The value of an Ace can be either 1 or 11, depending on what cards the player has in their hand.