EX-10.K



 Exhibit 10(k), Form 10-K 

Kansas City Life Insurance Company 
 KANSAS CITY LIFE INSURANCE COMPANY 
 INCENTIVE PLAN 
 2011 

JANUARY 24, 2011 







 KANSAS CITY LIFE 2011 INCENTIVE PLAN 

GENERAL CONSIDERATIONS 

ELIGIBLE EMPLOYEES 
 For
2011, eligible employees for the 2011 Incentive Plan will be the President, CEO and Chairman, (Class I); Vice Chairman of the Board (Class IIA), Senior Vice Presidents (Class IIB); Vice Presidents (Class III); all associates with at least 675
“Hay Points” (Class IV); and all associates with “Hay Points” starting at 534 and ending with 674 (Class V). Class IV includes one (1) OAIC associate and the Chief Pilot. The salaries of all Class I, II, III, IV, and V
participants will total approximately $11.7 million during 2011. Presently there are 83 Class I, II, III, IV and V participants. 

EXCLUSIONS 
 The Plan
does not cover the following employees: 1) employees who would qualify as a Class IV or V participant, who are paid on the DP payline, and who do not have any supervisory responsibilities; 2) Kansas City Life Sales and Marketing employees included
in the Regional Incentive Compensation Program or other field compensation programs; 3) Old American employees included in the Old American Insurance Company Incentive Plan or the Old American Regional Incentive Compensation Program; and, 4) Kansas
City Life Group Department employees included in the Group Sales Incentive Plan. Part time employees are not eligible to participate. 

TIMING OF PAYOUT 
 It is
the objective of the 2011 Incentive Plan to pay out awards after 2011 earnings are released to the public. 
 CORPORATE VS INDIVIDUAL AWARDS
— ALL CLASSES 
 All plan participants share the same three corporate goals: operating earnings, growth and expense
control. With the exception of Class I, all awards include the achievement of two individual goals. The individual goals are designed for each participant, but should support the overall corporate goals. Individual goals can be shared with other
participants when teamwork is necessary to accomplish a shared strategic responsibility. 

  
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 The Class I award is based entirely on the achievement of three corporate goals. 

Class IIA and Group Classes III, IV and V awards are based on the achievement of three corporate goals, three business unit goals and two
individual goals. 
 Class IIB, III, IV, and V awards are based on the achievement of three corporate goals and two individual
goals. 
 The weighting of awards for corporate versus individual goals differs for the various classes of participants. As an
example, the Class I participant is measured solely (100%) on the achievement of corporate goals while the Class IV and V participants are rewarded with a greater emphasis on achievement of corporate goals than individual goals (i.e., 65% of
the award is based on the achievement of corporate goals while 35% is based on the achievement of individual goals). 
 The
following table outlines the weighting of awards based on the achievement of corporate vs. individual goals for all classes of participants. 
  

									
	 	  	 Corporate/Business
 Unit Goals
	  	 	  	Individual Goals	  	 
					
	Class	  	 % Of Total
 Award*
	  	# Of Goals	  	 % Of Total
 Award*
	  	# Of Goals
	 I
	  	100%	  	3	  	N/A	  	0
	 IIA
	  	45%/40%	  	6	  	15%	  	2
	 IIB
	  	85%	  	3	  	15%	  	2
	 III
	  	75%	  	3	  	25%	  	2
	 III Group
	  	40%/35%	  	6	  	25%	  	2
	 IV
	  	65%	  	3	  	35%	  	2
	 IV Group
	  	35%/30%	  	6	  	35%	  	2
	 V
	  	65%	  	3	  	35%	  	2
	 V Group
	  	35%/30%	  	6	  	35%	  	2

 PLAN ADMINISTRATION GUIDELINES 
 NEW HIRE 
 An employee hired into an incentive eligible position during the
first two quarters of the calendar year will be eligible to participate in the Plan effective the first day of the month following the date of hire. The employee will receive a prorata award from the Plan for the year in which the participant was
hired. An employee hired in the last two quarters of the year will participate in the Plan beginning the following year. 

  
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 PROMOTION FROM NON-INCENTIVE ELIGIBLE POSITION TO INCENTIVE ELIGIBLE POSITION 

An employee promoted during the first two quarters of the calendar year to an incentive eligible position will be eligible to participate
in the Plan effective the first day of the month following the date of promotion. They will receive a prorata award from the Plan for the year in which they were promoted. 
 Any employee promoted to an incentive eligible position in the last two quarters of the year will participate in the Plan beginning the following year. 

CHANGE IN CLASS FROM ONE LEVEL TO ANOTHER 
 Any employee changing from one class to another during the first two quarters of the year in which the Plan is already in place will receive prorated awards based on the full months of participation. Any
employee changing from one class to another during the last two quarters of the year will participate in the new class beginning the following year. 
 TERMINATION DUE TO DEATH, OR RETIREMENT 
 The participant will receive a
prorated award from the Plan for the year in which the event occurred. Awards will be calculated and prorated based on completion of corporate goals and the number of full months of employment during the Incentive Plan year. The determination for
payment of individual goals will be made by the appropriate Senior Vice President or the President and pro-rated in the same manner as the corporate goals. 
 TERMINATION DUE TO DISABILITY 
 The participant will receive a prorated
award from the Plan for the year in which the event occurred based on the number of months the participant was actively at work. Awards will be calculated and prorated based on completion of corporate goals and the number of full months the
participant was actively at work during the Incentive Plan year. The determination for payment of individual goals will be made by the appropriate Senior Vice President or the President and pro-rated in the same manner as the corporate goals.

 TERMINATION FOR ANY OTHER REASON 
 No award will be made from the Plan for the year in which termination occurred. 
 OTHER EVENTS

 Any changes regarding corporate goals, incentive design, and deviations from established guidelines will be made by the
President CEO and Chairman of the Board and the Compensation Committee of the Board. 

  
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 EXHIBIT A 
 Award Matrices 

  
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 CLASS I MATRIX 

(President, CEO and Chairman) 
  

							
	 	  	Threshold	 	Target	 	Maximum
	 Corporate Goals
	  		 		 	
				
	 Goal 1 - Financial
	  	14.0%	 	28.0%	 	42.0%
	 Goal 2 - Growth
	  	14.0%	 	28.0%	 	42.0%
	 Goal 3 - Expense
	  		 	14.0%	 	14.0%
	 Total
	  	28.0%	 	70.0%	 	98.0%

 ADDITIONAL CONSIDERATIONS: 
  

	*	 No awards if financial results (Net Income) are less than Earnings Trigger. 



	*	 The Financial and Growth goals are pro-rated for results between Threshold and Maximum. 



	*	 The Expense Goal is achieved or not achieved. 



  
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 CLASS IIA MATRIX 

(Vice Chairman of the Board) 
  

													
	 	  	Threshold	 	 	Target	 	 	Maximum	 
	 Corporate Goals
	  				 				 			
	 Goal 1 – Financial
	  	 	3.600	% 	 	 	7.200	% 	 	 	10.800	% 
	 Goal 2 – Growth
	  	 	3.600	% 	 	 	7.200	% 	 	 	10.800	% 
	 Goal 3 – Expense
	  				 	 	3.600	% 	 	 	3.600	% 
	 Corporate Goal Total
	  	 	7.200	% 	 	 	18.000	% 	 	 	25.200	% 
				
	 Old American Goals
	  				 				 			
	 Goal 1 – Financial
	  	 	3.200	% 	 	 	6.400	% 	 	 	9.600	% 
	 Goal 2 – Growth
	  	 	3.200	% 	 	 	6.400	% 	 	 	9.600	% 
	 Goal 3 – Production
	  	 	1.600	% 	 	 	3.200	% 	 	 	4.800	% 
	 Business Unit Goal Total
	  	 	8.00	% 	 	 	16.000	% 	 	 	24.000	% 
				
	 Individual Goals
	  				 				 			
	 Individual Goal #1
	  	 	3.000	% 	 	 	3.000	% 	 	 	3.000	% 
	 Individual Goal #2
	  	 	3.000	% 	 	 	3.000	% 	 	 	3.000	% 
	 Individual Goal Total
	  	 	6.000	% 	 	 	6.000	% 	 	 	6.000	% 
				
	 Total
	  	 	21.200	% 	 	 	40.00	% 	 	 	55.200	% 

 ADDITIONAL CONSIDERATIONS: 
  

	*	 No awards if financial results (Net Income) are less than Earnings Trigger. 



	*	 The Financial and Growth goals are pro-rated for results between Threshold and Maximum. 



	*	 The Expense Goal is achieved or not achieved. 



  
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 CLASS IIB MATRIX 

(Senior Vice Presidents) 
  

													
	 	  	Threshold	 	 	Target	 	 	Maximum	 
	 Corporate Goals
	  				 				 			
	 Goal 1 - Financial
	  	 	6.8	% 	 	 	13.6	% 	 	 	20.4	% 
	 Goal 2 - Growth
	  	 	6.8	% 	 	 	13.6	% 	 	 	20.4	% 
	 Goal 3 - Expense
	  				 	 	6.8	% 	 	 	6.8	% 
	 Corporate Goal Total
	  	 	13.6	% 	 	 	34.0	% 	 	 	47.6	% 
				
	 Individual Goals
	  				 				 			
	 Individual Goal #1
	  	 	3.0	% 	 	 	3.0	% 	 	 	3.0	% 
	 Individual Goal #2
	  	 	3.0	% 	 	 	3.0	% 	 	 	3.0	% 
	 Individual Goal Total
	  	 	6.0	% 	 	 	6.0	% 	 	 	6.0	% 
				
	 Total
	  	 	19.6	% 	 	 	40.0	% 	 	 	53.6	% 

 ADDITIONAL CONSIDERATIONS: 
  

	*	 No awards if financial results (Net Income) are less than Earnings Trigger. 



	*	 The Financial and Growth goals are pro-rated for results between Threshold and Maximum. 



	*	 The Expense Goal is achieved or not achieved. 



  
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 CLASS III MATRIX 

(Vice Presidents) 
  

													
	 	  	Threshold	 	 	Target	 	 	Maximum	 
	 Corporate Goals
	  				 				 			
	 Goal 1 - Financial
	  	 	3.750	% 	 	 	7.500	% 	 	 	11.250	% 
	 Goal 2 - Growth
	  	 	3.750	% 	 	 	7.500	% 	 	 	11.250	% 
	 Goal 3 - Expense
	  				 	 	3.750	% 	 	 	3.750	% 
	 Corporate Goal Total
	  	 	7.500	% 	 	 	18.750	% 	 	 	26.250	% 
				
	 Individual Goals
	  				 				 			
	 Individual Goal #1
	  	 	3.125	% 	 	 	3.125	% 	 	 	3.125	% 
	 Individual Goal #2
	  	 	3.125	% 	 	 	3.125	% 	 	 	3.125	% 
	 Individual Goal Total
	  	 	6.250	% 	 	 	6.250	% 	 	 	6.250	% 
				
	 Total
	  	 	13.750	% 	 	 	25.00	% 	 	 	32.500	% 

 ADDITIONAL CONSIDERATIONS: 
  

	*	 No awards if financial results (Net Income) are less than Earnings Trigger. 



	*	 The Financial and Growth goals are pro-rated for results between Threshold and Maximum. 



	*	 The Expense Goal is achieved or not achieved. 



  
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 CLASS IV MATRIX 

(Associates With >675 Hay Points) 
  

													
	 	  	Threshold	 	 	Target	 	 	Maximum	 
	 Corporate Goals
	  				 				 			
	 Goal 1 - Financial
	  	 	1.950	% 	 	 	3.900	% 	 	 	5.850	% 
	 Goal 2 - Growth
	  	 	1.950	% 	 	 	3.900	% 	 	 	5.850	% 
	 Goal 3 - Expense
	  				 	 	1.950	% 	 	 	1.950	% 
	 Corporate Goal Total
	  	 	3.900	% 	 	 	9.750	% 	 	 	13.650	% 
	 Individual Goals
	  				 				 			
	 Individual Goal #1
	  	 	2.625	% 	 	 	2.625	% 	 	 	2.625	% 
	 Individual Goal #2
	  	 	2.625	% 	 	 	2.625	% 	 	 	2.625	% 
	 Individual Goal Total
	  	 	5.250	% 	 	 	5.250	% 	 	 	5.250	% 
				
	 Total
	  	 	9.150	% 	 	 	15.00	% 	 	 	18.900	% 

 ADDITIONAL CONSIDERATIONS: 
  

	*	 No awards if financial results (Net Income) are less than Earnings Trigger. 



	*	 The Financial and Growth goals are pro-rated for results between Threshold and Maximum. 



	*	 The Expense Goal is achieved or not achieved. 



  
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 CLASS V MATRIX 

(Associates With Points >533 and <675) 
  

													
	 	  	Threshold	 	 	Target	 	 	Maximum	 
	 Corporate Goals
	  				 				 			
	 Goal 1 - Financial
	  	 	1.30	% 	 	 	2.60	% 	 	 	3.90	% 
	 Goal 2 - Growth
	  	 	1.30	% 	 	 	2.60	% 	 	 	3.90	% 
	 Goal 3 - Expense
	  				 	 	1.30	% 	 	 	1.30	% 
	 Corporate Goal Total
	  	 	2.60	% 	 	 	6.50	% 	 	 	9.10	% 
	 Individual Goals
	  				 				 			
	 Individual Goal #1
	  	 	1.75	% 	 	 	1.75	% 	 	 	1.75	% 
	 Individual Goal #2
	  	 	1.75	% 	 	 	1.75	% 	 	 	1.75	% 
	 Individual Goal Total
	  	 	3.50	% 	 	 	3.50	% 	 	 	3.50	% 
				
	 Total
	  	 	6.10	% 	 	 	10.00	% 	 	 	12.60	% 

 ADDITIONAL CONSIDERATIONS: 
  

	*	 No awards if financial results (Net Income) are less than Earnings Trigger. 



	*	 The Financial and Growth goals are pro-rated for results between Threshold and Maximum. 



	*	 The Expense Goal is achieved or not achieved. 



  
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 EXHIBIT B 
 SUMMARY OF 2011 CORPORATE GOALS 
 Earnings Trigger—Measured by Net Income on a
calendar year basis: $21.66 MM 
 Corporate Goals 
  

			
	 I.      FINANCIAL GOAL: Operating Earnings measured on a
calendar year basis

		
	 Target
	  	 $27.07MM

	 Threshold:
	  	 $21.66MM

	 Maximum:
	  	 $32.49MM

	
	 II.     GROWTH GOAL: Life insurance Target
Premium

		
	 Target:
	  	 $11,866,000 (10% Increase)

	 Threshold:
	  	 $11,542,000 (7% Increase)

	 Maximum:
	  	 $12,405,000 (15% Increase)

	
	 III.   EXPENSE GOAL: Controllable Expenses
(Adjusted)

		
	 Goal:
	  	 $72.575 MM (0% Increase to 2010 Controllable Expenses)

	
	 Incentive plan costs will be excluded from financial measures for incentive plan purposes.



  
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