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Previously you could purchase a replacement iPhone for $50 under the program. AppleCare+ must be purchased within 30 days of iPhone purchase and requires inspection of your iPhone and proof of purchase. You can no longer purchase AppleCare after an incident has occurred. For more information see the AppleCare+ Terms and Conditions and the frequently asked questions.
in response to vice350z Can be bought at any time during the one year warranty period. Note that telephone support is only provided for 90 days. Buy applecare & you get two years. To extend your technical support and hardware coverage to up to two years from the original purchase date of your iPhone, get the AppleCare Protection Plan.