Will I be able to buy a SIM card in Israel for use with my modem when I'll be traveling there? Where to buy it and how much will it cost?
The SIM is free, but you have to buy a service package. I looked up on Orange site, they charge 119 shekels for a 10GB package for private people (99 for businesses), and 4 shekels/1MB for prepaid plans.
$1 = 3.75 shekels, and there's a VAT charge of 16% on top of the price.
In addition to Orange, there are two other major providers - Cellcom and Pelephone. All or some of them usually have points of sale in any mall. The prices vary between the providers, but are more or less comparable.