What type of document summarizes an insurance policy’s terms, coverage, and conditions?

The correct answer is a policy summary. A policy summary is a document that concisely outlines the main terms, coverage details, and conditions of an insurance policy. It is designed to provide potential policyholders with a clear and understandable overview of what is included in the policy, making it easier for them to make informed decisions about purchasing insurance.

In the context of life insurance, the policy summary plays an important role as it helps clients understand the key aspects of the insurance product they are considering. This document often includes information about premiums, benefits, exclusions, and any riders or additional features that may be available.

Other choices like policy endorsements, insurance applications, and buyer's guides serve different purposes. A policy endorsement typically modifies or adds to the terms of the original policy rather than summarizing it. An insurance application is the form filled out by the applicant to obtain insurance coverage and does not summarize policy terms. A buyer's guide provides general information about insurance products and markets but does not delve into the specifics of an individual policy's terms and coverage, making it distinct from the focused content of a policy summary.