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Yes you can use it on your existing account. It does require a new 2 year contract. I'm not sure how it would work if you are still under a contract from a previous phone, but if that isn't the case you can certainly get the discount with an existing Verizon account and phone number which is what I did. When you buy the phone on BestBuy.com you will be asked to login to your Verizon account where it will associate the new phone to your existing Verizon account and phone number. Your current phone will continue to be active until you receive the new phone and activate it manually. It was a pretty simple process, basically turn off the old phone, then activate the new phone and you're good to go.
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