Nothing like that should happen if you're paying for even an individual Workspace plan. You get a phone number for customer support, and it works.
Google shuts down free accounts when it believes they're being used for fraud/spam. And because scammers and spammers create them at virtually zero cost, and will fake activity to build account credibility until using them for nefarious purposes, that does mean legitimate free accounts occasionally get caught.
Regular backups are important no matter what though. Obviously Takeout exists, but there are lots of third-party automated backup solutions as well that will automatically convert Sheets files to .xlsx as part of the backup process. I use one that backs up nightly to my NAS.