Compliance guide
Password Policy Template
A password policy sets the rules for how your people create, store and protect passwords, and where multi-factor authentication is required. This guide gives you a free, modern (NIST-aligned) template and example, plus a done-for-you option.
Last updated
Key takeaways
- A password policy reduces the most common cause of breaches: weak, reused or stolen credentials.
- Modern guidance (NIST) favours longer passphrases and MFA over forced frequent changes and complex character rules.
- It usually sits under your cyber security policy as a supporting document.
- It's a standard line item in customer security questionnaires.
What a password policy covers
A password (or password management) policy tells everyone how to handle the credentials that protect company accounts and data. It covers minimum length, where multi-factor authentication is mandatory, how passwords are stored, and what to do if one is compromised.
Good password rules have changed. Modern guidance, led by NIST, favours long passphrases and multi-factor authentication over the old habit of forcing complex passwords that change every 30 days, which tends to push people toward weak, predictable patterns.
Modern vs outdated password rules
If your policy still mandates monthly changes and special characters, it's working against you. A quick comparison:
| Rule | Outdated approach | Modern (NIST-aligned) |
|---|---|---|
| Length | 8 characters minimum | 12+ characters / passphrases |
| Complexity | Force symbols & numbers | Encourage length, not symbols |
| Expiry | Change every 30-90 days | Change only on compromise |
| Reuse | Not addressed | Block reuse; screen against breach lists |
| Extra protection | Optional | MFA required on key accounts |
| Storage | Up to the user | Approved password manager |
What to include: password policy template structure
- Purpose and scope, why it exists and which accounts and people it covers.
- Password requirements, minimum length, passphrase guidance, and screening against known breached passwords.
- Multi-factor authentication, which systems require MFA (email, admin, remote access, finance).
- Password storage, use of an approved password manager and a ban on sharing or writing down passwords.
- Account types, stronger rules for admin/privileged and service accounts.
- Compromise response, what to do if a password may have been exposed.
- Responsibilities and review, who owns the policy and how often it's reviewed.
Download the editable password policy template
Add your email and we'll send the password policy template in Word and PDF, with modern, NIST-aligned default settings you can adjust.
Frequently asked questions
Is this password policy template free?+
Should passwords still expire regularly?+
Is MFA really necessary?+
How does this relate to my cyber security policy?+
Prefer your password policy done for you?
Tell us a little about your systems and we'll prepare a tailored, modern password policy with MFA requirements mapped to your accounts.
Requests for the password policy are reviewed and prepared manually, we'll follow up by email.