I’ve been approached by a new guy in the neighborhood about buying some life insurance. His company isn’t one of the larger insurance companies and I’m not sure it's one I should do business with. What’s your take? — Marvin Misgivings

Dear Marvin: Isn’t it a crying shame that we must be so suspicious these days about prospective dealings with others? You're smart to step back and take a deep breath before shelling out any dough, much less personal information. In order to offer some suggestions, I Googled “MSN Money,” a site that provides great information about financial topics.

The very first order of business is to make sure your neighbor is licensed to sell insurance. Don’t forget that you have a bird in the hand, because you can contact your state's insurance and securities regulators. (Tennessee’s Assistant Insurance Commissioner is Larry Knight, who can be reached at 500 James Robertson Parkway, Nashville 37243. A quick query may be obtained via (615) 741-2693 or email ce.agent.licensing@state.tn.us.)

Ask about agent commissions. What will this person get paid from the sale of your potential policy? How would the commission compare to other types of policies he sells? Look Sammy Salesman in the eye; if he seems the least bit wary or evasive, send him on his way with the pecan coffeecake your wife intended to take to his family to welcome them to the area.

One way to know right off if this person is what he markets himself to be is to check on his credentials. Within the insurance profession, extra training is important for special needs (i.e. LTC — Long Term Care — or financial planning), even though the preparation certainly doesn’t tell the whole story; the companies or even the state mandates what an agent must know in order to sell policies. He or she must study for, take, and master exams in these specialized fields of insurance and/or financial planning. Often, the company itself should be the primary focus. While always licensed by the state (if bona fide), to discover how these companies are rated, check out www.ambest.com. Before buying a policy, what you need to ask yourself in connection with the person doing the selling, is will the company be available for you when you need it. Moreover, what interests you is the central focus. Dates make a huge difference, as well: I’m much more apt to trust an insurance company (or any financial institution, for that matter) that’s been around for decades than one that just poked its head up a few years ago.

Yes, agents come in male and female and all sizes, colors, and ages. But without sounding like I’m touting my own gray hair (that doesn’t show, thanks to Emily, a great hairdresser), personally, I tend to be somewhat leery of “youngsters” who sell insurance policies. It takes time and effort to develop a good reputation, and someone who has been around awhile usually is especially careful not to risk his or her standing in the community. That’s not to say that a younger person isn’t fully capable and trustworthy, of course.