I personally am not a fan of extended warranties. I have bought several and never utilized a single one. New products typically have a higher defect rate. As the bugs are worked out and production is ramped up, the defect rate declines. Obviously, nothing lasts forever, so further down the line the problem rate goes back up. The manufacturers warranty usually covers the early time frame. Extended warranties cover the time in the middle when problems are fewer. That way, most of the service plans are never used, as in my personal experience. Your products may start to wear out and break down later in life, usually when the extended warranty it up. I am not saying that a service plan is a waste of money. If there is no way you can afford to replace your product, you may need one. This is more important if your particular model is brand new. It has been documented, for example, that nearly every time an automoblie goes through a major model change, the defect rate rises on the first year of the new generation. (The introduction of the 2000 Toyota Avalon was the only time in history that the defect rate actually went down after a major model change of a mass-produced car.) Cars typically have good warranties that will cover this, and safety issues will mandate a recall. But, the same effect often happens with other products. This may be a good time to take that extended warranty.
I found this graph that illustrates the product failure rate over time.
I found this graph that illustrates the product failure rate over time.