Yankale's definitely right -- much easier to buy a phone at the airport when you get off the plane. They're not even that expensive. I bought one, with all the minutes I needed, for less than 100 USD last spring. It came with a certain number of minutes, and when you need more, you can just call a free number, give your credit card number, and they'll add as many as you want. The rates back to the States aren't that bad, either. The company at the airport is Pelephone -- you might take a look at their website and see if they'll tell you anything about current rates.
One warning, though: they don't sell phones that take SIM cards, so you'll basically end up with a phone that you can only use in Israel. I go every year, so I use my phone, but you know, I bet you could sell your used Pelephone to someone here on the forums and recoup some of the costs.