How to get iWork on old iOS devices without buying new iOS devices

I just got a new prepaid sim card to use, and after inserting it into my iPhone 5, it asked me to activate my phone by login into my iTunes account. Then magically iWork becomes free for my account. I think Apple “thinks” I just got a new iOS device? Is this a loophole or is it meant to work this way now? I can’t even tell.

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