UPDATE July 2012
A gentlemen by the name of Max Li contacted me to tell me about a free service he has created called: TermsFeed (http://termsfeed.com/). I quickly went through the process and it appears to work just fine (free too!). Word of caution, there is a small snippet of code at the bottom of the generated policy that links back to TermsFeed. Its up to your discretion if you want keep it or not. Just be aware it is there.