Do you pay insurance in this situation?

[20 to 1 Spread]

So about last week, I had an interesting situation come up, the first of its kind. I'm sitting anchor and there are three players to my right. The TC was around 7 (estimating with remaining cards) and I fire my 2x max (edit 2 hands being my max bet). The cards run out and the TC becomes around 1. I was just going to hit my hands, but all of a sudden I hear an exclamation from the table, "HOLD ON"! I look up to the right and a guy suddenly says almost for verbatim, "you did not offer us insurance" while the dealer was in the motion of her hands checking the hole card. Quickly the others in unison all pay insurance.

I quickly ask, why does she have blackjack to the guys on my right. They say, she was going to flip it.

I tank a quick second and slowly push out my insurance bet. The dealer looks at me (or us) and with a fat big smile and grin? she says, are you sure?

Do we pay?

** In hindsight, I know what you're going to say.. It's reference to the .... ** I dont want to mention it as it will affect your bias, but given the information at hand mentioned, do you pay.

Also I decided to not pay it at the end (ignoring the outcome).