Device myth guide

"Free phone when you switch" vs. a free government phone

These two offers get confused constantly, but they come from completely different places. One is a retail carrier promotion available to anyone; the other is an income-based federal benefit. Here's how to tell them apart before you commit to either.

Fact-checked · 2026
"Free phone when you switch"Lifeline (free government phone)
Who offers itRetail carriers (Verizon, AT&T, T-Mobile, etc.)FCC-approved Lifeline carriers
Who qualifiesAnyone willing to sign up for a new lineHouseholds meeting income or program-based eligibility
How the "free" part worksBill credits over 24–36 months, tied to staying on the plan and often a trade-in deviceA direct $9.25/month service discount, sometimes paired with a bundled device
Contract requiredUsually yes, often on a specific higher-cost planNo long-term contract
Can include a premium phoneYes — iPhones and flagship Android phones are commonNo — typically an entry-level Android device

How "free phone when you switch" actually works

1. You trade in an old device

Most switch promotions require trading in a working phone, and the trade-in value is usually the bulk of what makes the new phone "free."

2. You commit to a specific plan

The promotional credit typically requires staying on an unlimited or premium-tier plan — switching down to a cheaper plan usually cancels the remaining bill credits.

3. Credits apply monthly, not upfront

You pay full price for the phone and receive bill credits spread over 24–36 months. Leaving the carrier or the plan early typically means paying the remaining device balance.

Which one is actually cheaper for a low-income household?

If you qualify for Lifeline, it's almost always the better deal: no contract, no trade-in requirement, and a direct monthly discount rather than a multi-year credit schedule you can lose by changing your plan. A "free phone when you switch" promotion can still leave you paying a substantial monthly bill for the plan itself.

Can you combine the two?

Not directly — Lifeline discounts are only available through Lifeline-approved carriers, which are typically separate, smaller providers rather than the big retail brands running switch promotions. Check your eligibility first; it may make the switch promotion unnecessary.

See if you qualify for the federal benefit first