Basically, the plan works from the moment you purchase it until two years is up.
If at any point within those two years, any part in your sewing machine breaks, you are entitled to a reimbusement for the full price you purchased it for, including tax.
Here is a link to the plan on Walmart's site that gives you some more detail:
http://www.walmart.com/ip/2-Year-Replacement-Plan-for-Sewing-Machines-60-79.99/23115859
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