OP, here is your folly. In order for you to get the phone they'll need your family member to sign a 2 yr contract for a plan compatible with the iPhone. If your family member doesn't want a data plan, then you can't get an iPhone.
This point needs to be given more attention. Verizon will NOT subsidize an iPhone unless you tack on another data plan. Your family member will have to accept the data plan for 2 years in order to use their upgrade to get an iPhone. There is absolutely no way around this, verizon is quite strict on this matter.