If you get a replacement phone, do you have to send back the old phone if it's paid for?

Hi everyone. My sister is having trouble with her S4, mainly it doesn't seem to hold a charge and it won't turn on anymore. But whatever the problem, T-Mobile has sent her a replacement S4 because we have some kind of monthly fee for a warranty/replacement thing.

But they are telling her to send back her original (non-working) phone. But does she need to do this if it's fully paid for? Isn't this her phone now, even if she gets a replacement? Isn't that why we are paying the monthly warranty fee?

Thanks!

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If you get a replacement phone, do you have to send back the old phone if it's paid for?