(MONEY Magazine) – If you're in the market for life insurance, now may be the time to buy--especially if what you need is a level-premium term policy, one whose premiums remain constant for an extended period. The reason: In March, the National Association of Insurance Commissioners (NAIC) approved a model regulation that would force many companies offering individual policies to meet higher reserve requirements. (Reserves are the amount of cash that insurers must put aside to cover benefit payouts.) The regulation will most directly affect companies selling term policies in which premiums are set for more than five years. In states that adopt the stiffer regulation, premiums on some level-premium term policies could increase by as much as 15%. New York already has adopted its own reserve requirements, and at least three more states-Connecticut, Illinois and Maryland-plan to implement the NAIC's model by Jan. 1. Other states will surely follow.

Why should you care? Because a level- premium term policy can be an excellent choice if you need coverage for a limited period-say, just until your kids are on their own. In contrast to annual renewable term-which offers lower initial costs-your premiums will not rise during the guarantee period. Level-premium term's main drawback is that your cost can skyrocket if you elect to renew once your term ends.

If you decide that level-premium term makes sense for you, here are some tips on how to pay less for more coverage:

Buy a fully guaranteed policy. Despite the promise implicit in the name, premiums in a level-premium term policy can rise unless the policy is fully guaranteed-that is, premiums are set for the full term. In states that adopt the new reserve requirements, many insurers will start guaranteeing only the first five years of their basic 10-, 15- or 20-year policies. Policies with full guarantees could cost as much as 15% more.

Check out the insurer's financial health. "Do not buy based on price alone," warns Don Mercer, an independent insurance agent in Reston, Va. Focus on companies with high financial ratings (double A or better by Standard & Poor's or Duff & Phelps, A+ or better by A.M. Best). Three worth checking out, says Mark White, president of Direct Insurance Services: First Colony (804-845-0911), Protective Life (800-333-3418) and Lincoln Benefit Life (800-525-9287). All are available in at least 47 states.

You can also get free quotes on level-premium term policies from Quotesmith (800-431-1147). It will give you prices of the 36 least expensive policies in its database-depending on your age, sex, whether you smoke, where you live and the amount of insurance you need.

--Susan Berger