Trade In With AppleCare

My phone charger port stopped allowing me to charge my device but I have been paying for insurance for over 2 years. I contacted my carrier and they're sending a replacement phone for me to use. I was wondering if I would be able to (since I've had the phone that I am getting replaced for over a year) be able to trade in my iPhone they are sending me to upgrade to an iPhone 12 pro. Would there be any problems attempting to do so? I feel like there shouldn't be problems because I've had the phone that I will be replacing for over 2 years, and the only restriction is that I have to have the phone for 1 year.

This may seem like I'm rambling, so for clarification, I would like to replace my current broken phone with insurance, then trade my replacement for a new iPhone 12 pro, hopefully being able to use the $600 credit that is offered when trading in an undamaged phone. If I am not able to do so, I don't understand because I have been paying for my insurance, so it seems like a waste of money to continuously pay for insurance on a phone that will soon be considered outdated.