[ScottWhigham]

I want to know whether I should create a Terms of Service and Privacy Policy page for my website.

Yes, that shouldn't be up for discussion IMO. Yes, you need one of each. Both help tell people what kind of company you are (at a meta level) and both are signals to search engines that you are "real".

As for how, find some companies you like and align with and use those as rough guides. You'll surely find ways to differentiate your product/service/needs so you'll have no problems once you do that.