Before you buy it, make sure you understand what it is relative to competing products...
AppleCare is not insurance. It will not cover you in the event the phone drops, gets wet or is lost. It simply covers you for manufacturer's defects for a period of one year beyond the factory warranty. Quite frankly, any manufacturer defects are going to be evident within that first year. There are no moving parts in the machine, everything is solid state. The chances of you actually using this are slim to none....
Verizon offers an insurance program for $10.99/mo. that covers you against loss, theft, or accidental damage (excluding full liquid immersion).
Squaretrade offers and insurance program that covers manufacturer's defects and accidental damage (including full liquid immersion) for $99.
And there's quite a few others out there. Be sure to Google iPhone warranties before you commit.