Do I need to remove sim from iPhone 5?

I bought a Verizon iPhone 5 for someone international. I bought it contract price and will pay ETF fee. Do i need to open the phone and remove sim after cancelling or I can just send phone sealed in box and it will automatically be non contracted?

Added (1). Amanda, the VErizon iPhone 5 is global. Whether it has a sim card or not, there's a slot on iPhone 5 for micro sim card

Yes, you need to take off the SIM and verify that Verizon finished the contract, because you might be charged if the contract doesn't end.

I don't believe they have a SIM card you can take out, looks like you're screwed.