Exhibit 10(e), Form 10-K
                                           Kansas City Life
                                           Insurance Company











               KANSAS CITY LIFE INSURANCE COMPANY

                    LONG-TERM INCENTIVE PLAN









                DESCRIPTION OF PLAN FOR 1994-1996









                        JANUARY 19, 1994

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KANSAS CITY LIFE 1994-1996 LONG-TERM INCENTIVE PLAN





                     GENERAL CONSIDERATIONS

ELIGIBLE EMPLOYEES

The Long-Term Incentive (LTI) Plan is a cash based incentive program designed to
cover a performance period from January 1, 1994 through December 31, 1996.

The Plan covers the following positions:

   President
   Senior Vice Presidents
      (exception of SVP Market Research)
   Vice President/General Counsel
   President, Sunset Life

AWARDS

It is the objective of the Plan to pay awards in January, 1997.

The following describes the awards as a percent of salary of the participants as
of December 31, 1996:

                             Threshold      Target      Maximum

   President (KCL)              36%           54%         90%

   SVPs, VP/Gen Counsel
     and President (SSL)        30%           45%         75%

Awards  earned  between  threshold  and maximum will be prorated  between  award
levels.

PAYOUTS

The estimated payouts under the LTI Plan are as follows:

                          Minimum  Threshold   Target   Maximum

   President (KCL)           0      149,981   224,972    374,954

   SVPs, VP/Gen Counsel
     and President (SSL)     0      373,640   560,459    934,099

       Total                 0      523,621   785,431  1,309,053

STOCKHOLDER PROTECTION

Kansas City Life's statutory  capital and surplus as a percent of assets must be
maintained  at a minimum of 9% over the three year  period in order for the Plan
participants  to receive an award.  For this  calculation,  the asset  valuation
reserve is included with statutory capital and surplus and is then calculated as
a percent of assets.

This calculation has yielded the following results for prior years:

                       1991         9.25%
                       1992        10.14%
                       1993         9.53%

GOALS

The LTI Plan award is based on the  achievement  of an  average  three year GAAP
Return on Equity. A target goal of 8% has been established for this Plan.

The  income  figures  that  will be used in this ROE  calculation  will  exclude
capital gains and losses,  nonrecurring  items and will be adjusted to eliminate
the effects of FAS 115 adjustments. The ROE calculation will be made by dividing
income by the "beginning of year" equity.

The ROE calculation for prior years is as follows:

                       1991           8.8%
                       1992           9.6%
                       1993           7.4%

The following matrix describes the award level for various returns on equity:

     Award Level       Threshold       Target       Maximum

      Average
     3 year ROE           7.5%           8%            9%
     1994-1996

The actual  average ROE earned  between  7.5% and 9% will be used to prorate the
awards.



                 PLAN ADMINISTRATION GUIDELINES

NEW HIRE

A senior executive hired during the first two years of the Plan will be eligible
to  participate  in the Plan  effective with his/her date of hire. The executive
will  receive  a prorata  award  from the Plan for the  period  in which  he/she
participated.  An  executive  hired  in the  last  year  of the  Plan  will  not
participate until the next Plan cycle.

PROMOTION FROM NON-INCENTIVE ELIGIBLE POSITION
TO INCENTIVE ELIGIBLE POSITION

An executive promoted in these  circumstances  during the first two years of the
Plan will be eligible to  participate in the Plan effective with his/her date of
promotion.  The  executive  will  receive a prorata  award from the Plan for the
period in which he/she participated.  An executive promoted in the final year of
the Plan cycle will not participate until the next Plan cycle.

TERMINATION DUE TO DEATH, DISABILITY OR RETIREMENT

The executive  will receive a prorata award from the Plan for the cycle in which
the event occurred.

TERMINATION FOR ANY OTHER REASON

No award  will be made  from the Plan  for the  cycle in which  the  termination
occurred.

Award  determination  for any other change in status  (e.g.,  demotion,  layoff,
etc.) will be made on a case-by-case basis by the President and the Compensation
Committee of the Board.



                    LONG-TERM INCENTIVE PLAN

                   ROE FOR 1994, 1995 AND 1996

                          Adjusted          Earnings Without
                        Net Earnings      Capital Gains/Losses

    5 Year Average           9.8                  8.0

   10 Year Average           9.5                  7.9

   14 Year Average           9.9                  8.9