January 1, 1997


Mr.  Timothy S. Reimer
AmVestors Financial Corporation
415 S.W. Eighth Avenue
Topeka, Kansas  6+6603

Dear Mr.  Reimer:

Re:  Employment Agreement With AmVestors Financial Corporation (the 
"Company")

This will confirm the Company's employment understanding as follows:

                                                                1.  
EMPLOYMENT

                                                                1.1  
Full-time

                                                                                
The Company has agreed to employ you, and you have agreed
                  
to accept Full-time employment in AmVestors Financial
                                                                                
Corporation (the "Company") as set forth below.  The term
                                                                           
"Company" in this Agreement shall include all its subsidiaries
                                                             
and affiliates.

                                                                            
The term "Full-time" shall be construed as meaning you shall 
                                   
have no other employment, nor shall you engage in any 
                                                                              
activity, as a principal, agent, owner, officer, employee, 
                                       
partner, lender, investor, advisor or consultant, as an 
                                                                                
insurance agent or broker, or for or with any enterprise 
                                                                             
engaged in, or planning to engage in, business similar to or
                                                                           
planning to engage in, business similar to or resembling those
                                                           
conducted by the Company.

1.2 Duties
                                     
Your title, which may be changed from time to time by the
                                                                               
Chief Executive Officer, or the Board of Directors, in its
                                           
discretion, shall be Executive Vice President - Chief
Investment
Officer.


                          
You shall be responsible for the duties of an Executive
                                                                            
Vice President - Chief Investment Officer to include, but not
limited to, those duties shown on the attached
Exhibit A
and such other duties as reasonably assigned
by the
Chief Executive Officer. These duties may be
changed
                       
from time to time by the Chief Executive Officer or the
                                                        
Board of Directors.
                                                                        

1.3 Time and Place
                                             

                                                                           
You shall provide the duties set forth herein at such time and
place and in such manner as the Chief Executive Officer
or the
Board of Directors may, in their sole discretion,
reasonably
                                                           
direct.
38<PAGE>
                           
2. TERM

2.1 Term of Employment
                                                          
                                                                           
Subject to the terms and conditions hereof, this Agreement
                                                                               
shall continue in force until December 31, 1997, and shall
                                                                             
automatically renew for successive twelve (12) month periods
                         
unless otherwise terminated pursuant to Section 2.2.

2.2 Termination


a.
For Cause


             
Notwithstanding any other provision of this Agreement,
                 
your employment may be terminated at the sole discretion
                                                   
of the Company if you:

                                                                            
(1) Fail to be present for work and perform duties set forth
             
herein or as reasonably requested from time to time by
the Chief Executive Officer, the President or
the Board
of Directors, except during vacation time, periods of
            
disability or illness, necessary business travel or if
                             
you have been excused by the Chief Executive Officer.

                                                                              
(2) Divulge any confidential information to third parties
                               
without the Company's prior written consent.
                              
Confidential information shall include that described
                       
in Section 4.1 and including, but not limited to, sales
                                        
methods, techniques, procedures or sources.

                            
(3) Commit any act of gross negligence, willful mis-
                   
conduct or dishonesty detrimental to the Company.

                                              
(4) Convicted of a felony.

                                                   
b. Voluntary Severance

                          
Your employment under this Agreement may be
             
terminated by you, upon thirty (30) days prior written
          
notice to the Company. All compensation and benefits
            
provided at the Company's expense, as described in
    
Section 3 of this Agreement, shall terminate on the date
                       
of your termination under this Section 2.2b.

                                                
c. Other Than for Cause

         
Termination by the Company for reasons other than For
                   
Cause, as specified above, shall be deemed to be
                                                        
Termination Other Than for Cause. If the Company
                                                        
terminates your employment Other Than for Cause, you
will be entitled to receive your current salary as set
forth
in Section 3.1 for a period of twelve (12) months
from the
                                                                            
termination date. You shall not be entitled to this twelve
                                            
(12) months of current salary if you terminate your
39<PAGE>
                                                       
employment with the Company.
                                                           
Disability


                                                                                
This Agreement may be terminated by you or the Company in
the event of your total and permanent disability, in
which
case you shall be entitled to six (6) months'
compensation as
set forth in Section 3 during the period of disability,
which
shall include any portion of such disability pay
received
hereunder prior to such
termination.
                                             
3. COMPENSATION


You
shall receive as full compensation for your services
                                                            
hereunder the payments set forth in this Section 3.

3.1 Salary
   

You shall receive a salary of $245,000.00 per year,
which may
be increased from time to time by the Company in
its sole
                                                                    
discretion.

                                                               
3.2 Bonus and Incentive Compensation

                                                                           
You may be eligible to participate in such bonus and incentive
                                                 
compensation plans as the Board of Directors or Chief
                                                              
Executive Officer permits.
3.3 Fringe Benefits

                                                                             
You shall be entitled to participate in all group health and
                                                                                
insurance programs and all other fringe benefit, employee
                                                                             
stock option plans, retirement plans or additional compensa-
                                                                             
tion which the Board of Directors may hereafter, in its sole
                                                              
and absolute discretion, elect to make available to you.

               3.4  Expenses

                                                   
The Company shall reimburse you for your ordinary and
       
necessary business expenses in accordance with its
                                           
normal  practices in effect from time to time.

                  4.  CONFIDENTIAL INFORMATION AND COVENANT NOT TO COMPETE

                4.1  Confidential and Proprietary Information

               
You acknowledge that certain information you obtain in
                                            
the performance of your duties hereunder is confidential
                                                                               
and proprietary information, and you agree not to disclose
                                                                                
such confidential and proprietary information without the
                                                                                
Company's written consent, either during the term of this
                                                                             
Agreement or after its expiration, except as may be required
                                 
in the performance of your duties hereunder, as may be
                                     
required by law or as the Company may authorize in
                                                                                
writing.  All copies of the proprietary and confidential 
                                                                                
information in your possession at the termination of your
                                                   
employment shall be returned to us.  Confidential and
40<PAGE>
                                                                           
proprietary information referred to in this paragraph includes
                                                                               
all non-published financial and accounting material, agent
lists, client lists, actuarial and profitability
studies,
marketing test results, and all other information
designated
or
treated
                                               
by us as confidential or proprietary.
4.2 Non-Competition During Period of Employment

                          
Since your employment hereunder is to be full-time, you
                                                                              
agree that you will not, during the term of this Agreement,
                                                            
without the Company's consent:

a. Engage in any other employment.

b. Be interested directly or indirectly as an
officer,
director, shareholder, partner, or owner in any
way of:

                                    
(1) Any other business or organization engaged in the
                                 
sale of insurance, or annuity, or investment products
                                     
whether or not such business or organization now is
                                                                
or shall then be competing with the Company.

                     
(2) Any other business or organization which is
                                            
competing with the Company, the Company's
                                       
affiliates or subsidiaries.

4.3 Non-Competition After Period of
Employment
                                           
If this agreement is terminated and you receive com-
                                                                               
pensation pursuant to Section 2.2c. or 2.3, you agree that
                                                                             
for one (1) year thereafter (hereinafter called the "Limited
                                                                             
Period"), you shall not, without the Company's prior written
                                                                               
permission, attempt to entice away from the Company or its
                                                                            
affiliates or subsidiaries on behalf of any party whatsoever,
                                         
or employ or otherwise engage, contract with or retain
                                    
directly or indirectly any employee then employed by the
    
Company or its affiliates or employed by them any time
                                                               
during the one (1) year prior to such attempt or employ-
                                                                              
ment. You shall not during such Limited Period do anything
                                                                      
to impair the Company or its affiliates or subsidiaries'
prospects of sales or business retention, and
shall not
solicit for any reason any of the Company's or its
employees,
                                                            
agency personnel, insureds or applicants, nor accept
                                                                              
commissions directly or indirectly on any policy written in
                                                 
replacement of any policy produced or written by the
Company or any of its affiliates or subsidiaries, nor
shall
you in any way derogate the Company or its
personnel.
4.4 Enforcement

You acknowledge that the covenants contained
in this
Section 4 are such that their breach are
unlikely to be
adequately compensable by damages and consent
that they
may be enforced by injunction.

5. MISCELLANEOUS
41<PAGE>
`
5.1 Amendment
                                             
This Agreement may be amended only by written amendment
                                                               
executed by both you and the Company.
                         
5.2 Entire Agreement
                                   
This Agreement shall constitute the entire agreement of the
parties
with respect to the subject matter. All prior
                                                                                
negotiations and understandings, whether written or oral,
              
are merged into this Agreement.
                            
5.3 Notices

                                                                            
All notices required or permitted to be given hereunder shall
                                                                                
be in writing. Notices intended for the Company shall be
                                                                               
addressed to the Chief Executive Officer of the Company at
                                                                            
its home offices. Notices intended for you shall be address-
                                          
ed to you at your address shown on the Company's current
                                                                                
employment records, if you are then still employed by the
                                                                              
Company, and at your last known address if you are not then
                                                
so employed.
                                                  5.4   No Assignment

                                                                                
Neither party may assign this Agreement without the prior
                                     
written consent of the other.

                             5.5   Execution and Binding Effect

                                                                              
Your signing and returning the enclosed copy of this letter
                                                                               
will make it a binding contract binding on you, your heirs
                                                
and assigns, and upon the Company and its successors
                                                    
and assigns.

Very truly yours,

AMVESTORS FINANCIAL CORPORATION



By: ________________________________


Agreed to:



___________________________________
Timothy S. Reimer


Date: ______________________________
42