Buyback insurance is a type of paid contract that allows users to return old electronics to a retailer or vendor and receive upgraded devices at a precalculated rate. Buyback insurance is designed specifically for products with shorter lifespans.
Techopedia explains Buyback Insurance
Buyback insurance was introduced in electronic and tech products to circumvent product obsolescence and decommissioning from an end-user’s perspective. Although this is generally a marketing tactic that helps ensure repeat business for retailers, buyback insurance programs can provide a cost-effective way to keep up with new technology.
In general, buyback insurance returns up to 50 percent of the value of a product to put toward upgraded technology, but this can vary depending on the customer, region, organization’s policy and nature of the product.