Which document is crucial to inform a policyholder about expected costs and benefits?

The policy summary is a crucial document because it provides essential information to the policyholder about the coverage being offered, including expected costs and benefits. This document outlines the key features of the insurance policy, including premiums, deductibles, coverage limits, and specific benefits. By presenting this information in a clear and concise manner, the policy summary enables policyholders to understand their financial obligations and the extent of their coverage, facilitating informed decision-making regarding their insurance options.

In contrast, a claims form is specifically used when a policyholder seeks to make a claim on their insurance policy, not to provide an overview of costs and benefits. The application form is utilized to apply for insurance coverage and does not summarize the policy's provisions. A disclosure statement may provide additional legal information or disclaimers related to the policy, but it typically does not contain the succinct summary of costs and benefits that the policy summary does. Thus, the policy summary stands out as the key document for informing policyholders about expected costs and benefits effectively.