Applecare+ iPhone 8 Product Red ?

1. Apple Care+ is not insurance, its a warranty extension. It provides coverage for issues stemming from the manufacturing process for up to 2 years, and 2 incidents of accidental damage for a reduced fee during this time.It does not cover loss of theft as an insurance policy would.

2. Apple will replace a device for an identical unit including its color, unless its impossible, or unreasonably difficult to obtain an identical replacement. That means if the device needs to be replaced by Apple it will be replaced with another IPhone red model. I have never heard of Apple replacing an iPhone under warranty, with a different color.

Apple One (1) Year Limited Warranty

(ii)replace the Apple Product with the same model ...

That generally means same storage space, same type, and same color. No reason to think they'd replace it with another color for no reason.

You misread the terms. The replacement is a like for like swap.

If damage is limited to the screen, and nothing else has any problem, then Apple will likely just replace the broken screen, and give back your same iPhone. Even less of an issue there.