my site approved without this ..but i added privacy policy .. add privacy policy and tos to be in safe side
yes, you should have privacy policy as well as ads policy in your blog. I heard lot of blogs and sites been penalized and adsense disabled becuase of not showing them. Adsense team manually verify your site once in a while to verify, if they find your site without privacy policy you will be in trouble. having privacy page wont harm you anything. There are lot of online provacy policy makes available.
you should have one, yes, it's better anyway, don't know if it is a requirement, probably not, but you'll have to add one anyway.
It is definitely a good idea to take the 15 minutes to put one on. They are very easy to find and the last thing your want is to start getting great traffic then lose your Adsense account =(