If, hypothetically, someone gave you a phone or you bought it 3rd party (aka ebay etc) you just pay an “Activation” fee - since unlike GSM phones, Verizon CDMA services don’t utilize SIM cards - they have to be activated / switched at the carrier (at least, that’s been my experience with it). Shouldn’t change your contract.
However, if you bought one at the store and used the “new ever 2” deal - you are renewing your contact in order to receive the discount.