That is correct, srd202. With the Verizon Wireless Extended Warranty, we can replace your device for free if it has a manufacturer's defect after it's been paid off. You can get all the details about the Extended Warranty in the following link: http://spr.ly/6608EUdD2. Simply click on the Verizon Wireless Extended Warranty link on the right column of the page. We'll be standing by in case you have any further questions. UbaldoJ_VZW