That is just a matter of opinion. The TEC Coverage covers lost or stolen phones along with phones that have hardware failures with a $169 dollar deductible on certain iPhone models (8GB, 16GB iPhone® 4 and 16GB iPhone® 4S) and a $199 dollar deductible on all the other models (32GB iPhone® 4 and 32GB, 64GB iPhone® 4S).
The Apple Care for the iPhone does not cover lost or stolen phones, but every experience I have had with them on issues with any product I have through them with Apple Care (MacBook Pro, iMac, iPad 2, iPhone, and iPod) they have meet or exceeded my expectations. They will also cover two accidental incidents in the 2 years of Apple Care, but that will have a $49 dollar deductible.
So the question mainly is do you want covered if you lose your phone or have it stolen.
You can do both because the first two yrs if you damage your phone or need help you should get apple care.
I personally don't upgrade every time so I like the tec part for both stolen and extended warranty for as long as you pay for it your iPhone is warranty replaceable say the battery dies after your first year you can have Verizon send you a new one or apple care for 2yrs. AppleCare has a lower deductible $49 if you break your phone but you could always lose your phone. To protect your investment I would do both.
Apple care comes in 2 versions apple care Plus includes damage regular AppleCare does not. You have 30days to add AppleCare plus and verizon tec. But you only say get your phone replaced due to damage is 2. For vzw you get max 2 per year for damage lost etc per a year but they say if you do 2 you might lose coverage be carefull.
We still have an iPhone 4 32 gig and vzw us still willing to replace it. And we have an iPhone 4s too.