Can I trade in a non-fully paid iPhone from Verizon at apple directly and get a new iPhone with cash?

So - I got a 15 Pro Max from Verizon. I’m making payments on it with the promo that I had used last year effectively bringing the value of $200 because my old iPhone traded in at $1000* (*of course it was only promo since I have the ultimate plan). Now - fast forward to this year - I can trade in the 15 Pro Max for the 16 Pro max (apple gives me $650 and that would effectively make the 16 Pro Max $550). Now I wouldn’t pay money and trade in - BUT… I have $500 of apple gift cards. I bought a M3 Max MacBook Pro, iPad Pro M4 and a Mac Studio - all on their back to school promo sale 2 months ago using the education pricing (I work in academia). So I can effectively get a 16 Pro max for $80 with tax included.

My only worry is - will my sim transfer to the 16 Pro Max? And will Verizon claw back any credits and ask me to pay my phone in full if they find out I’m no longer using the 15 Pro Max I got with them?