Wasn't there a real contract from all state posted?
I wouldn't buy it from these chasuna fund people, but what's to lose by calling your local all state agent and seeing if they have this pricing? If you sign a legit contract with all state, how could this not be real?
It was actually an illustration, and it states at the top that it's not binding and that the values shown on the contract are the only binding ones. However, there appear to be Allstate agents pushing this mistake (that's not uncommon - for agents/brokers to find a mistake and milk it for all it's worth), who obviously think the contract will come through with the same values. Also, insurance companies are loathe to issue a contract with values that contradict the illustration, even if they have legal standing to do so.
If it's a mistake, it would be shut down by now. This has been going on for a while. I know people who submitted applications, and were accepted.
So to all out there, this is real.
As an actuary, I can assure you that it is a mistake, and it will be shut down. But this is not like a price mistake on some online retailer, that they can just fix it and be done. It takes time.
If you need proof, the fact that it's only NY is a significant flag. All the insurers have a separate subsidiary for selling in NY. The reason is because NY is generally the strictest of the states regarding insurance regulation, and they require that each 'company' comply with those rules even outside of NY. The subsidiary gets around that requirement. That means the pricing is different in that one subsidiary. There's no logical (actuarial) reason for it to be set that way - a data mistake is the likeliest explanation.
