From what I know, the way it works is you can run out time on their contract (20 months out of 24 months) to qualify for an upgrade at the 2 year price. Same thing works with the 1 year upgrade price (more expensive).

But there aren't really any benefits to having a contract, honestly, there are more disadvantages than advantages. No need to worry about any ETF fees (Early contract termination fee) which are usually $200 / line for SunCom phones.

Good luck