Securities and Exchange Commission
                             Washington, D. C. 20549


                                    Form 10-Q


               Quarterly Report Under Section 13 or 15 (d) of the
                         Securities Exchange Act of 1934


                      For the Quarter ended March 31, 1998


                           Commission File No. 2-40764


                       Kansas City Life Insurance Company
                                  3520 Broadway
                        Kansas City, Missouri 64111-2565

                              Phone: (816) 753-7000

                             IRS Number: 44-0308260

                      Incorporated in the State of Missouri



The Registrant  (1) has filed all reports  required to be filed by section 13 or
15 (d) of the  Securities  Exchange Act of 1934 during the  preceding 12 months,
and (2) has been subject to such filing requirements for the past 90 days.

               Yes X                             No______


Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the most recent date available.


        Class                           Outstanding at April 8, 1998
Common Stock, $2.50 par value                6,197,459 shares


                       Kansas City Life Insurance Company
                          Quarter ended March 31, 1998


Part I

Item 1.  Financial  Statements
Incorporated  by reference from the Quarterly  Report to  Stockholders  (pages 4
through 7). See the attached exhibit.  These interim financial statements should
be read in conjunction with the Company's 1997 Annual Report to Stockholders.


Item 2. Management's  Discussion and Analysis of Financial Condition and Results
of Operations

Results of Operations

Operating  earnings  per share  declined  21  percent  in the  quarter to $1.31.
Including  realized  investment gains, which declined slightly year to year, net
income  declined  20 percent to $1.57 a share.  Much of the  decline in earnings
resulted from less  favorable  mortality at each of the insurance  companies and
narrowed interest margins in the interest sensitive  products.  Reported results
for 1998 include those for the block of business acquired in late 1997,  whereas
1997's first quarter results do not. Therefore,  where appropriate,  the block's
results have been excluded from the following  analysis in order to provide more
valid comparisons.

Sales Performance

Consolidated  new  annualized  premiums rose 43 percent  compared to a year ago.
This  growth  was  led by the  variable  products,  whose  new  premiums  nearly
quadrupled  to $14.7  million for the quarter.  Variable  products  comprised 43
percent of new premiums.  Non-variable universal life and flexible annuity sales
rose 29 percent and 14 percent, respectively.  Only two lines of business' sales
declined.  Sales of final expense  coverage to the senior market declined as did
group life and disability sales.  Life insurance  in-force totaled $26.2 billion
at March 31, 1998, a 6 percent annualized decrease from last year end.

Insurance Revenues

Insurance  revenues,  in total,  rose 4 percent.  Life  insurance  premiums rose
principally due to growth in single-premium traditional annuities.  Accident and
health  premiums  declined 3 percent due to the  continued  runoff of the closed
home  health  block and a leveling  of group  disability  and  dental  premiums.
Contract charge revenues associated with interest sensitive products increased 8
percent, reflecting the sales growth achieved over the past year.

Investment Revenues

Net investment  income declined 5 percent  excluding the impact of the purchased
block of  business.  The yield on the  investment  portfolio  declined as yields
available in the marketplace  were below the overall  portfolio yield and yields
lost through  maturities  and  repayments.  Gains  realized from the  investment
portfolio vary at management's discretion as they manage the portfolio's overall
return.

Benefits

Total  benefits rose 3 percent in the first quarter as they equaled 61.5 percent
of operating  revenues  compared with 59.6 percent in last year's first quarter.
The deterioration in the benefits ratio reflected worse mortality  experience at
each of the  insurance  companies.  Mortality  fluctuates  quarter  to  quarter.
Surrenders of traditional life insurance rose $365,000,  or 10 percent,  for the
quarter.  Group's  claims  ratio  deteriorated  somewhat  but claims  experience
improved  considerably in the dental line.  Improved claims ratios were attained
in the home health line of business.

Other Expenses

Insurance operating expenses include commissions, capitalized policy acquisition
costs  and home  office  operating  expenses.  Home  office  operating  expenses
increased  5  percent  thus far in  1998,  the  increase  being  focused  in the
marketing areas of the Company.

Liquidity and Capital Resources

Statements  made in the  Company's  1997 Annual  Report to  Stockholders  remain
pertinent.

Cash provided from operating  activities,  combined with net inflows  related to
contract deposits, totaled $21.8 million in 1998 contrasted with $22.3 million a
year ago.  Liquidity  remains  sufficient  as the Company  made new  investments
totaling $149.4 million during the quarter.

Total  assets  of $3.5  billion  at March  31,  1998  increased  at a 6  percent
annualized  rate from  last  year end.  Book  value  improved  8 percent  in the
quarter,  on an  annualized  basis,  to $87.47 a share.  Excluding the impact of
changes in unrealized  investment  gains since the  beginning of the year,  book
value rose 6 percent on an annualized basis.


Changes in Reporting Regulations

Financial  Accounting  Standard  No.  130,  "Reporting   Comprehensive  Income,"
requires that all components and the total of comprehensive  income be displayed
prominently,  including  the change in unrealized  investment  gains and losses.
This  guideline  was  implemented  for the  first  quarter.  Standard  No.  131,
"Disclosures   About  Segments  of  an  Enterprise  and  Related   Information,"
establishes requirements for annual and interim reporting of segment information
including  products and services,  geographic areas and major customers.  Kansas
City Life is studying  these  requirements  and will adopt this standard by year
end 1998.


Part II:  Other Information

Item 1:  Legal Proceedings

The Company has agreed to  indemnify  Security  Benefit Life  Insurance  Company
("Security  Benefit") from a claim pursuant to the terms of the  Coinsurance and
Servicing  Agreement  ("Agreement")  dated September 4, 1997 between the Company
and  Security  Benefit.  The case,  William H.  Stewart,  Richard  M.  Littrell,
Kimberley Weyland Reisinger (f.k.a.  Kimberley K. Weyand) and Catherine I. King,
Individually and on Behalf of All Others Similarly Situated, v. Security Benefit
Life Insurance  Company and Bank Market Service,  Inc. , was filed April 1, 1998
in the District Court of Johnson County,  Kansas.  The Plaintiffs are current or
former  policyowners  of  Security  Benefit,   all  of  whom  allegedly  brought
bank-endorsed  life insurance policies from Security Benefit through Bank Market
Service,  Inc.  The  Plaintiffs  allege that they and others who bought  similar
products were deceived into believing that their policies were purely retirement
plans, not life insurance.  They allege that they and others similarly  situated
were  damaged in that they could have saved more money for  retirement  had they
invested their funds  elsewhere.  The  Plaintiffs  seek,  among other  remedies,
equitable  relief,  contractual  and  compensatory  damages  in an  undetermined
amount, and attorney fees for the alleged deceptive and fraudulent  practices of
the Defendants in connection with the sale of the policies. The Petition further
alleges that the Plaintiffs' class consists of tens of thousands of policyowners
who purchased retirement plans from 1997 through the present. The case is in its
very early stages,  class action certification has not been granted, nor has any
responsive pleading been filed. The amount of any liability which may arise as a
result of this case cannot be  reasonably  estimated,  and no provision for loss
has been made in the Company's financial  statements.  However,  there can be no
assurance that this case or any current or future  litigation  relating to sales
practices will not have a material effect on the Company.

Item 4.  Result of Votes of Security Holders

On April 23, 1998,  the Annual  Stockholders  Meeting was held at 3520 Broadway,
Kansas City, Missouri. At this meeting,  there were 6,196,102 shares outstanding
and  eligible to vote,  and  5,418,879  shares were  represented  at the meeting
either in person or by proxy.  The  following  Directors  received the number of
votes indicated and were elected for a three year term:

W. E. Bixby                -   5,388,883
Jack D. Hayes              -   5,372,891
Francis P. Lemery          -   5,388,843
Michael J. Ross            -   5,383,098
Elizabeth T. Solberg       -   5,379,195

The following Directors continued their term of office after this meeting:

J. R. Bixby
R. Philip Bixby
W. E. Bixby, III
Richard L. Finn
Webb R. Gilmore
Nancy Bixby Hudson
Warren J. Hunzicker, M. D.
Daryl D. Jensen
C. John Malacarne
Larry Winn, Jr.


Item 6.

(a)  Exhibits:  None

(b) Reports on 8-K: There were no reports on Form 8-K filed for the three months
ended March 31, 1998.












                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                       KANSAS CITY LIFE INSURANCE COMPANY




___________________________
/s/Richard L. Finn
Senior Vice President, Finance


____________________________
/s/John K. Koetting
Vice President and Controller


____________________________
/s/C. John Malacarne
Vice President, General Counsel and Secretary



Date:  May 12, 1998











                       KANSAS CITY LIFE INSURANCE COMPANY
                          Quarter ended March 31, 1998
                                     EXHIBIT

                        Quarterly Report to Stockholders


Consolidated
Balance Sheet
(in thousands)

                                      March 31     December 31
                                        1998           1997
                                   -------------  -------------
Assets
Investments:
  Fixed maturities:
    Securities available for sale,
      at market                      $ 2,053,558      2,004,516
    Securities held to maturity,
      at amortized cost                  130,216        145,661
  Equity securities available
    for sale, at market                  106,104        114,986
  Mortgage loans                         273,767        270,054
  Real estate, net                        42,381         36,764
  Real estate joint ventures              42,828         43,347
  Policy loans                           123,004        123,186
  Short-term                              74,965         74,341
  Other                                    7,500          7,500
                                   -------------  -------------
                                       2,854,323      2,820,355

Deferred acquisition costs               216,321        209,826
Other assets                             339,694        351,291
Separate account assets                   82,772         57,980
                                   -------------  -------------

                                     $ 3,493,110      3,439,452
                                   =============  =============

Liabilities and equity
Future policy benefits               $   806,035        803,738
Accumulated contract values            1,745,520      1,755,133
Other liabilities                        316,746        292,007
Separate account liabilities              82,772         57,980
                                   -------------  -------------
  Total liabilities                    2,951,073      2,908,858

Stockholders' equity:
  Capital stock                           23,121         23,121
  Paid in capital                         16,626         16,256
  Accumulated other
    comprehensive income                  40,539         36,448
  Retained earnings                      550,668        543,715
  Less treasury stock                    (88,917)       (88,946)
                                   -------------  -------------
                                         542,037        530,594
                                   -------------  -------------

                                     $ 3,493,110      3,439,452
                                   =============  =============

Notes:

*  The components of comprehensive income, net of
   related tax follow.

                                    1998      1997
   Net income                     $ 9,741    12,134
   Unrealized gains (losses)
     on securities                  4,091   (22,067)
                                   ------    ------
   Comprehensive income (loss)    $13,832    (9,933)
                                   ======    ======

   Unrealized gains will fluctuate as interest rates
   vary over time.

*  These financial statements are unaudited but, in
   management's opinion, include all adjustments
   necessary for a fair presentation of the results.

*  Income per common share is based upon the weighted
   average number of shares outstanding during the period
   (6,195,226 shares (6,189,437 shares - 1997).

*  These interim financial statements should be read
   in conjunction with the Company's Annual Report to
   Stockholders.  The results of operations for any
   interim period are not necessarily indicative of
   the Company's operating results for a full year.

*  Certain amounts from the prior year's financial
   statements have been reclassified to conform with
   the current year's presentation.

Consolidated
Income Statement
(in thousands, except per share data)
                                              Quarter ended
                                                 March 31
                                              1998     1997
                                              ----     ----
Revenues
Insurance revenues:
  Premiums:
    Life insurance                         $ 25,229   24,647
    Accident and health                      10,368   10,732
  Contract charges                           27,280   20,456
Investment revenues:
  Investment income, net                     49,042   47,044
  Realized gains                              2,527    2,823
Other                                         2,339    2,677
                                            -------  -------
    Total revenues                          116,785  108,379
                                            -------  -------

Benefits and expenses
Policy benefits:
  Death benefits                             32,007   23,805
  Surrenders of life insurance                4,763    3,643
  Other benefits                             16,904   16,029
  Increase in benefit and contract reserve   18,126   19,418
Amortization of policy acquisition costs      8,517    8,666
Insurance operating expenses                 23,247   20,071
                                             ------   ------
    Total benefits and expenses             103,564   91,632
                                             ------   ------

Pretax income                                13,221   16,747
                                             ------   ------

Federal income taxes:
  Current                                     4,764    7,240
  Deferred                                   (1,284)  (2,627)
                                              ------  ------
                                              3,480    4,613
                                              ------  ------

Net income                                 $  9,741   12,134
                                             ======= =======

Per common share
  Operating income                           $ 1.31     1.66
  Realized gains, net                          0.26     0.30
                                              -----    -----

  Net income                                 $ 1.57     1.96
                                              =====    =====





     CONSOLIDATED
STATEMENT OF CASH FLOWS
    (in thousands)
                                                   Quarter ended
                                                      March 31
                                                 1998         1997
 Operating activities
   Net cash provided                            $15,311       17,489

 Investing activities
 Investments called or matured:
   Fixed maturities available for sale           55,471       32,558
   Fixed maturities held to maturity             15,601       31,622
   Mortgage loans                                 6,549       17,531
   Other                                          6,091        6,002
 Investments sold:
   Fixed maturities available for sale           29,960       58,921
   Other                                          5,862          848
 Investments made:
   Fixed maturities available for sale         (129,363)    (121,981)
   Equity securities available for sale          (1,304)     (11,040)
   Mortgage loans                               (11,326)      (8,465)
   Real estate                                   (6,006)        (176)
   Real estate joint ventures                      (736)     (11,436)
   Increase in short-term investments, net         (627)     (11,033)
 Other, net                                       5,655       (2,257)
   Net cash used                                (24,173)     (18,906)

 Financing activities
 Policyowner contract deposits                   53,831       44,306
 Withdrawals of policyowner
   contract deposits                            (47,372)     (39,477)
 Dividends paid to stockholders                  (2,787)      (2,723)
 Other, net                                      (2,490)         146
   Net cash provided                              1,182        2,252

 Increase (decrease) in cash                     (7,680)         835
 Cash at beginning of year                       50,927        4,577
   Cash at end of period                        $43,247        5,412







Kansas City Life's operating earnings totaled $1.31 a share for
the first quarter, a decline of 21 percent.  Net income, which
includes realized investment gains, declined 20 percent to $1.57
a share. The decline in earnings was caused by mortality swings
in all three of our insurance companies and by a narrowing of
interest spreads on our interest sensitive products.



Kansas City Life experienced record sales in the first quarter.
Sales, in terms of new annualized premiums, rose 43 percent for
the quarter.  Sales growth continues to build as we successfully
recruit seasoned life agencies and achieve improved sales
results in our core agencies.  Sales of variable products nearly
quadrupled to total $14.7 million for the quarter.  These
products accounted for 43 percent of new premiums.
Significantly, sales of our non-variable universal life products
climbed 29 percent.  Just two lines of business experienced
sales declines, namely, sales of final expense policies for the
senior market and group life and disability products.



Investment income rose 4 percent year-to-year. Excluding
investment earnings from the block of business acquired in 1997,
investment earnings declined 5 percent as market yields on new
investments fell below yields lost through investment
maturities, repayments and sales.



Kansas City Life has received certification as a member of the
Insurance Marketplace Standards Association (IMSA).  IMSA has
established a uniform set of standards to benchmark against in
order to ensure that companies have appropriate market conduct
policies and procedures.  Certification was earned by
successfully undergoing rigorous evaluation by both internal and
external sources.  This certification underscores our continuing
commitment to customer satisfaction and ethical marketing
practices.



Book value, or stockholders' equity per share, rose 8 percent in
the quarter on an annualized basis to $87.47 a share.



The Board of Directors approved a quarterly dividend of $.45 a
share, unchanged from the previous quarter.  The dividend will
be paid on May 26 to stockholders of record on May 11.



This is my first message to you as your President.  I feel
fortunate to have been able to assume this position at a time
when we are enjoying such outstanding marketing momentum.  The
leadership and direction provided by my Father, Walt, are now
coming to fruition.  We are a financially strong player in a
vital segment of the financial services industry. With the
continued efforts of our associates and sales agents, I believe
that we will extend and augment the tradition and performance of
past generations.  We are the future of Kansas City Life, and
the future is bright with promise.


                                         /s/ R. Philip Bixby