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New rules make it even more CONFUSING AND EXPENSIVE to shop for term insurance.

AMONG THE many perils that threatened the new millennium, Y2K computer problems and the apocalypse failed to materialize. But term life insurance rates did go up once a new regulation, called Triple X, went into effect on January 1 (just as we warned you it would back in August). The reason: Insurers must set aside more money to pay future benefits on term policies that keep premiums level for more than ten years.

Thirty-year guaranteed-level-term insurance premiums took the biggest hit, with premium hikes of up to 150%. Some companies simply stopped selling policies that lock in premiums for three decades. Twenty-year guaranteed-level-term policy rates shot up 50% at some companies, according to Byron Udell, president of insurance-shopping service AccuQuote.com. Ken Sapp of Zurich Kemper Life blames Triple X for a premium increase of up to 40% on his company's 20-year term policies.

Confusion is on the rise, too, as some insurers cut their guarantees rather than boost premiums. In other words, a plan may be called "20-year term," but its level-premium guarantee is good for only five or ten years--short enough that it's not affected by Triple X.

For example, a healthy 40-year-old man would pay $215 a year for the first five years of a 20-year nonguaranteed $250,000 policy with Banner Life. The annual premium could then jump as high as $1,280 in year six, $1,878 in year 11 and $4,338 in year 20. (Insurers must spell out such scary, if unlikely, worst-case scenarios in their policy materials.)

Bargain hunting. Despite Triple X damage, you can still find plenty of good deals. Term insurance prices had fallen so much in recent years that many of the new jacked-up rates are still low by historic standards. "We're not even going back to where we were five years ago," says Bob Miller of CNA Life Cos.

At the end of 1999 a healthy 40-year-old woman would have paid $185 a year for the lowest-priced $250,000, 20-year term policy in Quotesmith.com's term-insurance database. Even in this post-Triple X world, several companies charge $225 or less for the same policy. And many ten-year level-term policies are actually less expensive than they were in 1999.

Expect rates to change frequently in the next few months, as companies try to match each other's new rates and strategies. A few of the top players have raised their rates since January, while others are planning to lower their prices.

With the market in flux, to shop for the best deal you'll need to find a broker or Web site (see the box on page 106) that represents many insurance companies. Be sure you understand exactly what a policy guarantees: If you think you'll need insurance for a long time, it's usually worth the extra money to lock in an annual premium for the duration. Depending on your health and the market, you may not be able to find a cheaper alternative if a nonguaranteed policy's premiums start skyrocketing five or ten years from now.

It doesn't cost much to avoid the risk. For example, for $258 per year --just $43 more than the policy with the five-year guarantee--Banner Life promises that a healthy 40-year-old man's premiums will stay the same for 20 years.

If the price isn't guaranteed for the entire policy term, the agent must give you an illustration showing how high the rates can go. Be sure to ask about special provisions. Can you renew the policy later on or convert it to a cash-value policy that remains in force for the rest of your life? In many cases, you don't have to pay extra for those options.--Reporter: JAMES RAMAGE

SEARCHING FOR DEALS IN A POST-TRIPLE X WORLD

These Web sites offer valuable help if you're in the market for level-premium term life insurance.

* AccuQuote (www.accuquote.com, 800-442-9899) doesn't provide instant quotes online. Instead, you answer detailed questions on its Web site, then an agent gets in touch with you. You may not relish the idea of chatting with an agent, but considering all the confusion swirling around long-term policies, having someone to turn to with your questions can be a blessing.

* InsWeb (www.insweb.com) provides you with instant quotes for many big-name insurance companies. And by asking more questions in its online interview than other services, InsWeb usually does a good job of matching you with a policy (and price) you'll actually qualify for. Less-inquisitive sites can highlight fabulous deals that, you later discover, are out of your reach. InsWeb mixes guaranteed and nonguaranteed policies together. So look carefully at the "initial rate guarantee" column to make sure that the price will not rise for as long as you want the policy.

* Quotesmith (www.quotesmith .com) offers pages of instant online quotes without asking many questions. After the lowest-price companies pop up, you need to take the next step and answer several medical questions to find which policies you're likely to qualify for. One plus: Quotesmith segregates guaranteed from non-guaranteed policies.