What happens after 365 days?
If you don't upgrade again the 365 Guarantee expires. The premium online services will cease, or fall back to a basic service. For current 365 products this means:
  • Web Designer: The free hosting and free Online Designer continue, but the Online Content Catalog will no longer be accessible*
  • Web Designer Premium: The M hosting falls back to the free hosting offer, the Premium Xara Online Designer falls back to the free Online Designer, the Online Content Catalog will no longer be accessible*

In addition you will no longer receive feature or content updates. The copy(s) that you have installed at the time of expiry will continue to run indefinitely, BUT if you re-install on a new machine after the Guarantee has expired then the new installation will fall back to the version you originally purchased.
So let me get this straight. A first copy will be continually upgraded to new features/content during the 365 day period.

However, if I have a hard drive failure after the 365 day subscription period and I have not chosen to renew, then I get the base product and not the features/content I paid for through the 365 days?

Sounds great. Sounds wonderful. Sounds ...