We have a 3 year Product Exchange Plan (PEP) available on all of our phones. This coverage includes over the counter exchange on your phone for the full term of your contract - as many exchanges as needed. Just be sure not to drop it in the bathtub or feed it to your dog(physical or water damage) it also covers the battery and all accessories in the box for the full 3 years. the plan cost is 12.99/month billed to a major credit card of your choice or a lump sum price of 467.99(plus taxes) if you do not wish to do credit card payments. As long as the payments are made the coverage will continue and Best Buy Mobile will be there for the life of your phone 
hope this answers your questions!
Our Exchange plan guarantees that if there is a defect with your phone - apart from physical or water damage that we will get you a new phone, if yours doesn't exist you get any phone up to full price value at time of purchase of your original phone. it may or may not be the same phone for example: if you have an phone 4 16GB and there is a defect with it i.e.. Home button no longer works. And iphone 4 no longer exists you will get phone 4s/iphone5 16GB. so your not stuck with the same phone. and yes it is a contract for the 3 years, just like your cell phone contract they go hand in hand to make sure that you will never have to upgrade early/resign your cellphone plan due to defective phones.
