Our Verizon bill just went down by $60/mo because both of our phones were "paid off". We're on the old plan, where each phone has its own data allocation. It's cheaper than the current offerings if you only have two devices. Paying for internet service for an iPad is fucking stupid. You're carrying around a hot spot in your pocket already. Just pair the iPad with your phone and share the connection.
But yeah, save a couple hundred bucks (minimum) by buying the phone outright from somewhere other than Verizon and then putting it on your existing account. I broke my last phone (don't ever put them in your back pocket!), and bought a new one off Amazon. The new one cost a couple hundred bucks. The broken one cost me $660 because I paid for it through my Verizon account at $30/mo.