<prompt> Human: Im trying to give advice to a relative on if or for how long they should pay for the phone protection plan. If you never use it, its a waste of money, but if you happen to break your phone early on, its cheaper than having to buy a new one outright. I figure that there has to be some sort of break even point where it no longer makes financial sense to continue paying for the plan. Im trying to graph this out on a spreadsheet but could use some help in making sure Im going about it the right way.Here are the important numbers 749.99 cost of phone 31.25mo for 24 months to pay off phone 9 monthly cost for protection plan through Verizon 199 deductible to file a claimI threw all these numbers into a spreadsheet and made a graph with it, but I probably have too much information since it just makes it more confusing. Link is here.  <response>: Its a pretty safe assumption that buying insurance on anything is betting against the house edge. Which is not to say its always a bad idea:- If you cant afford to replace it when it breaks, it protects you against catastrophe. Like health or home insurance. This is harder to do with a luxury item like a phone though--but still possible. - If you have reason to believe that you deviate from the average. This is actually easier than home or health insurance, since they arent inspecting you buy just throwing you in a big averaged out pile with everyone else. Maybe youre a klutz and know it, or you have a hook for a hand, or you work on a construction site or as a beach lifeguard. Could be worth it. Just from the numbers, it seems like a break even point is at a generous 5 years, but that doesnt take into account the declining value of the phone and all the things that arent covered. 