Canceling the iCloud storage plan subscription?

Exchanging iPhone 6 for iPhone 7. Iphone 6 lacks 4GB to do iCloud backup. Had to buy $1 plan a month with 50GB. IPhone 7 has I believe a minimum of 20GB extra storage compared to iPhone 6. I only need the extra 4GB. So if I cancel my iCloud storage plan will any 4GB extra data be deleted that I received with the 50GB storage or will it still be filled by iPhone 7's 32GB storage?

If you change your storage plan all of the data over 5gb will be deleted but if you have it stored on your new phone you will still have your data and won't need the icloud storage anymore

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