(MONEY Magazine) – Our ancestors' eyes undoubtedly started to glaze over shortly after an ancient Roman actuary unveiled the first mortality table. The average consumer hasn't paid much attention to life and health insurance trends since. But you should. Why? ''There's a revolution in insurance that is just beginning,'' says Dede Pahl of the College for Financial Planning in Denver. ''Consumers will have to become educated so they can shop for coverage instead of just accepting what an agent is selling.'' Indeed, in the '90s shoppers for health and life insurance will face a dramatically changed environment. The catalysts of change: last year's stock market crash, likely further tax law changes, an aging population and the AIDS epidemic. The first major shift you are likely to see is the demise of the single- premium life policy designed primarily as a device for generating tax-free income and only secondarily as insurance. Currently, such policies work this way: a one-time premium of $5,000 or more is invested in an account that throws off tax-free earnings. Left to accumulate, these earnings increase the death benefit, but policyholders can withdraw them in the form of loans. The loans are tax-free and need never be repaid. But if provisions passed by the House of Representatives last summer become law, such loans will be taxable in most cases. Furthermore, you may have to pay a 10% tax penalty on policy earnings you receive before age 59 1/2. If you already own a single-premium policy, sit tight. Policies purchased before June 21, 1988 will probably be exempt from the new rules. Moreover, if you don't own one, buying now isn't out of the question, even if the full Congress adopts the measure. ''This isn't the end of single-premium life as an attractive investment for those who want to build an estate,'' says James Hunt, director of the National Insurance Consumer Organization, a consumer advocacy group in Alexandria, Va. That's because the earnings accumulate untaxed, and the proceeds pass to your heirs free of income tax. When shopping for insurance, don't ignore variable life. After the stock market crash last October, sales of such contracts sank. That should not have been surprising; variable life policies are tied to securities markets. With a variable life policy, your premiums are invested in one or more insurance- company-sponsored mutual funds of your own choosing. While the masses may ignore variable life until the next certifiable bull market, you should not. Instead, consider putting your money in the insurers' stock funds, which have the potential to produce impressive long-term gains. On the other hand, stay away from variable life if you plan to park cash in the company's low-yielding money-market fund. You will need the potential for greater returns to overcome commissions and administrative fees.

The AIDS epidemic will affect the availability and cost of life insurance in the 1990s. AIDS-related claims were $200 million in 1986 and are expected to reach a cumulative total of $70 billion by the year 2000. As a result, premiums may plateau or even rise after a 30-year decline. Insurers may also pass on increased costs by reducing the dividends and interest paid on some policies. To stem their losses, insurers will increasingly press to test potential policyholders' blood for the AIDS virus. If that doesn't worry you, it should. You may be denied coverage or offered it at higher cost even if you are free of the AIDS virus because while they are at it, insurers will also analyze your blood for high cholesterol, liver disease and other disorders. If you are in the market for individual disability coverage that will replace part of your salary if you become unable to work because of an injury or illness, buy now to beat coming price increases. Premiums will rise 5% to 10% this year and continue to climb over the next few years, says Bruce Brown, president of the Monarch Life Insurance Co. While AIDS is partly to blame, more important causes are unisex insurance rates and the increased duration of claims. Look for a policy that's noncancelable and guaranteed renewable at the original premium. Increases in health insurance premiums will be tempered somewhat by competition and by tougher underwriting standards that will disqualify more borderline individuals. To date, 37 million people are not covered. Fifteen states run risk pools for those who cannot qualify for private insurance, but only 24,500 people are covered that way because few can afford the premiums, which range up to four times those charged for comparable private policies. If Massachusetts Governor Michael Dukakis goes to the White House, he may push national health insurance modeled after his state's plan that took effect last spring. Under that program, which is being phased in over four years, individuals who aren't covered by employers' or private insurance -- currently 10% of all Massachusetts residents -- can buy policies from the state. Part of the program's cost is paid by employers and the state. Policyholders pay premiums based on income for coverage that approximates a standard employer- sponsored plan. One type of insurance -- long-term-care insurance that pays nursing-home and sometimes home health-care costs -- will be more available as companies respond to an aging population's needs. But unless you feel that you will want benefits soon, don't buy individual coverage until more comprehensive, less costly policies are introduced. Says Dede Pahl: ''Buying such a policy today is like buying a hand-held calculator when they first came out and cost $1,000. If you waited a couple of years, you could have bought a better one for $10.''

BOX: What to Do

OPTIONS FOR INSURANCE BUYERS

IF YOU NEED . . . Cash-value life insurance THEN YOU SHOULD . . . Consider variable life policies where your premiums can be invested in insurance-company sponsored equity mutual funds.

IF YOU NEED . . . Disability insurance THEN YOU SHOULD . . . Buy now to beat coming increases in premiums.

IF YOU NEED . . . Nursing-home coverage THEN YOU SHOULD . . . Hold out for the 1990s' cheaper, more comprehensive individual policies, unless you think you will need benefits soon.

IF YOU NEED . . . Tax-free income THEN YOU SHOULD . . . Steer clear of single-premium life insurance and consider buying municipal bonds instead.