I wouldn't call it a scam, but its definitely not the best deal. Think about it, it's what, $7 a month? So if you go a year without needing to use it, that's $84, almost the cost of applecare+, and then if you need to file a claim it's $199 to get a new phone. And I think you have no choice but to ship and wait for the new device. Total is $283. Applecare+ is $99 and the flat deductable of $50 per occurance...total is $149...and you can go to an Apple Store (assuming you live close enough to one) and get it changed out the same day.