As long as you're a new customer and agree to a 2-year term. Verizon has a promotion where they waive the 9.99 additional-line fee if the additional line is a smart phone. So you should only have to pay $29.99 a month for data and share your family's minutes. Hopefully it works out that way for you.
9.99 waive offer ends on 1/30. Won't be able to add the iphone under this promotion.
As long as the line is brand new (or a transfer from another carrier), yes, you will get the $199 price. You will not get the $199 price if you already have a line on Verizon and are not within your upgrade period.