Does the phone have to be new?
It's always a warm and fuzzy feeling to crack open shiny new tech. But it's also damn expensive. Seeing as tech refresh cycles are about every 12 to 18mos. You can buy a 1 to 2 yr old device and still be in the 'current' generation or one rev back and not have a terrible experience. And you'll most likely pay half the sticker. With the savings, you can save up for a replacement unit if something happens to the primary.
Also, here's something for homeowners who must have a new device. I've added a special computer rider to my policy. For $15 per YEAR, all my tech I own is covered against damage or theft minus a $250 deductible. Even if the incident happens away from home. So if you buy new, something like this may be a better idea to cover your tech than extended warranties.
One more thing. Typical Tier 3 devices(GS3, iP5, etc) avg around $650.
Save $28 x 24 months = $672, plus you could sell your previous unit to recoup some resale value. Combine that with BYOD pay as you go providers and that's more money back to you. You'll pay less over time and you'll have incentive to stay with modern devices.
It's your money, work it!