My Epic phone was an upgrade and the $7 insurance was ongoing. This is a must when I'm dealing with a phone that would cost me over $500 to replace without it!
Sprint's insurance to me is great. The instore portion of the insurance would replace your phone free of charge for mechanical breakdowns that can't be fixed in the store, and the $100 deductible is for when you loose your phone, water damage or cosmetic breakage. You just have to be careful because I think you can only use the deductible portion twice in a given year. I'm not sure since I haven't used that in quite some time.
I've been with Sprint for over 12 years and my Epic replaced the HTC touch pro that I never purchased. It was an instore insurance upgrade for my previous smartphone that's sold old I can't even remember what it was!