Confirm billing cycles for monthly and annual members on Membership plugin

Hello – just a little confused here and want to confirm I’ve set up membership correctly. On our site we have two subscription plans, an annual and a monthly. They each, upon payment, provide access to the single access level we have (ie. “0bserver members”:wink:.

The subscription plans are setup as such:

Annual – No starting point, 0bserver access level (set to Finite mode, 365 days, $19.99)

Monthly – No starting point, 0bserver access level (set to Finite Mode, 30 days, $2.99)

I then noticed in the Membership Options screen there is a Membership Renewal (set to 365 day renewal period) and Membership Upgrades (set to 1 days). Are all these settings correct to accomplish what we want? I was a little confused by the Membership Renewal and Membership Upgrade options. Thanks very much! Also, will it just automatically bill them? If so, what happens if the payment fails (ie. card number doesn’t work)? Thanks again!