IMO, and for the record, there is no gain for me to promote anything sold in the financing office, extended warranties are now worth it for one reason: Computers. Cars today are so electronic and computerized, and that stuff is only covered by your 3-year, 60,000km New Vehicle Limited Warranty. This even includes all the computers that control the engine. Yes, those are not powertrain warranty.
That 8" touch screen in the dash of your truck? That's $1,500 to replace. Now they're putting 10, 12, and even 15" touch screens! In 3 years of working here, I've seen 2 fail.
There's also the backup sensors, forward collision avoidance systems (becoming standard equipment), memory/power seats, heated seats, push-button start and keyless entry, the list goes on. Suddenly, a $2,500-$3,500, 7-year warranty doesn't sound so bad (that's $500/year).
Our provider also offers a money-back offer where if you don't make a single claim during your coverage period, you'll get the majority of the cost of your warranty back.
As for life/disability... If you have people who rely on your for income and you finance a $50,000 vehicle, then suddenly are in a condition where you can no longer pay for it, well, that's on you buddy.