My IPhone 4s speakers broke, but I have insurance on it?

Will apple take the phone and give me a new one or will they let me keep the phone and also give me a new one?

Apple will take it and give you a new one or will just take your phone and fix it. Most likely they will give you a new one

Obviously they aren't giving you new phone and letting you keep the old one, they aren't stupid. They will probably just replace the speaker if thats really the issue.

Apple will most likely give you a new one.

They will give you a refurbished iPhone, not new for taking in your old iPhone.