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 June 30, 2000


                           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 July 28, 2000
         Common Stock, $1.25 par value          12,036,627 shares


                       Kansas City Life Insurance Company
                           Quarter ended June 30, 2000

Part I
Item 1. Financial Statements

Incorporated  by reference from the Quarterly  Report to  Stockholders  (pages 4
through 8). See the attached exhibit.  These interim financial statements should
be read in conjunction with the Company's 1999 Annual Report to Stockholders.

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

Results of Operations

Kansas City Life's  operating  earnings per share  nearly  doubled in the second
quarter to equal  $1.15.  Including  realized  gains and losses,  which  changed
minimally year to year,  net income per share equaled  $1.14,  an increase of 87
percent over last year. For the six months, operating income per share increased
41 percent to equal $2.21 and net income per share increased 39 percent to equal
$2.23. The substantial increase in earnings reflected three factors. First, last
year's second quarter results were  considerably  below  historical trend due to
poor mortality  experience and Sunset Life relocation  costs.  Second,  earnings
this  quarter  benefited  approximately  $4.0  million  from  the  unlocking  of
assumptions  related to the  amortization of deferred  acquisition  costs on the
interest sensitive  products.  Actual earnings  experience on these products has
been more  favorable  than these  assumptions  originally  indicated.  Thus, the
assumptions have been revised to reflect these favorable  variances resulting in
the reduced  amortization of additional  acquisition  costs.  Third, this year's
results have been boosted by decreased  operating  expenses  resulting  from the
consolidation of Sunset Life's operations into the home office in Kansas City.

Net investment income increased 2 percent in the second quarter and 1 percent in
the first half.  Increased portfolio yields overcame a slight decline in earning
assets. However,  investment margins narrowed somewhat on the interest sensitive
products.

Home office operating  expenses  decreased 9 percent in the second quarter and 5
percent in the first half.  As mentioned  above,  the decrease is largely due to
the savings  resulting from the  consolidation of Sunset Life's  operations into
the parent's home office in 1999.

Kansas City Life - Individual

In the second quarter,  new annualized premiums increased 24 percent largely due
to  variable  universal  life sales,  which  increased  16 percent and  variable
annuity sales, which increased 56 percent. These increases were partially offset
as non-variable  universal life sales decreased 36 percent and flexible  annuity
sales  decreased  25  percent.  For  the six  months,  new  annualized  premiums
increased 10 percent.  Variable  universal  life sales  increased 40 percent and
variable  annuity sales  increased 35 percent.  Additionally,  traditional  life
sales  increased  21  percent  versus  last  year.  Partially  offsetting  these
increases,  non-variable  universal life sales decreased 27 percent and flexible
annuity  sales  declined 42 percent.  Variable  product  sales  accounted for 78
percent of total sales for the six months,  up from 63 percent last year. On the
basis of direct statutory  receipts,  new sales increased 11 percent versus last
year on the  strength of new  variable  sales,  which  increased  31 percent and
equaled 80 percent of total new sales.  New  non-variable  universal  life sales
fell 30 percent,  individual  annuities  fell 69 percent and flexible  annuities
declined 28 percent.

Total insurance revenues, which include premium renewals and contract charges on
the interest sensitive products, declined three percent for this segment in both
the second quarter and the first half.

Total benefits for this segment  decreased 2 percent in the second quarter and 3
percent in the six months.  Death  benefits  increased  14 percent in the second
quarter and 7 percent in the six months,  reflecting  less  favorable  mortality
experience versus last year. Total surrenders  increased 3 percent in the second
quarter and increased 18 percent in the six months. Total benefits, as a percent
of operating  revenue,  equaled 59 percent in the first half, up from 55 percent
in the first quarter, but down from 62 percent a year ago. As mentioned earlier,
unlocking  on deferred  acquisition  costs  resulted  in a one-time  decrease of
approximately  $2.0 million to the deferred  acquisition  cost  amortization for
this line. Operating income increased by 62 percent in the second quarter and by
29 percent in the first half.

This segment provided 40 percent of consolidated  insurance  revenues in the six
months and 66 percent of consolidated operating income, compared with 42 percent
and 69 percent, respectively, a year ago.

Kansas City Life - Group

Results for the second quarter improved $0.8 million versus last year. Thus, for
the first six months,  the group segment  contributed 2 percent of  consolidated
operating  income,  compared to a loss a year ago. This improvement is primarily
the result of improved sales  revenues and a decline in the claims ratio,  which
decreased from 76 percent last year to 73 percent.  Group sales, in terms of new
annualized  premiums,  increased 9 percent in the second  quarter but declined 5
percent in the first  half.  However,  excluding  the stop loss line,  which was
discontinued late last year, new annualized premiums increased 21 percent in the
second  quarter and 14 percent in the six  months.  Group sales were lead by the
dental line,  which grew 20 percent in the second  quarter and 24 percent in the
six months.  Partially offsetting these increases,  group life sales declined 43
percent in the second  quarter  and 47 percent in the six  months.  Group  sales
provided 10 percent of consolidated  new annualized  premiums,  the same as last
year.

For this segment,  total  benefits as a percent of revenues,  equaled 62 percent
for the second quarter, down from 69 percent last year. For the six months, this
ratio totaled 61 percent, down slightly from 63 percent last year. In total, the
group  segment  provided 21 percent of  consolidated  insurance  revenues in the
second quarter, up slightly from 20 percent last year.

Sunset Life

Sunset Life's new annualized premiums increased 10 percent in the second quarter
but fell 26 percent in the first half.  While progress is being made, the impact
is still being felt from last year's change in senior  marketing  management and
the  consolidation  of Sunset's  operations  into the home  office.  Sunset Life
contributed  5 percent  of total new  annualized  premiums  during the first six
months, down from 7 percent a year ago.

Total  insurance  revenues  increased  15 percent in the second  quarter  and 10
percent in the six months.  Total benefits for this segment increased 42 percent
in the second quarter and 30 percent in the first half. Death benefits  declined
10 percent in the second  quarter  but  increased  21 percent in the first half.
Mortality  experience  improved  in the second  quarter,  but still  trails last
year's experience.  Total surrenders  increased 31 percent in the second quarter
and 7 percent in the first  half.  Total  benefits,  as a percent  of  operating
revenue equaled 54 percent in the first half, up from 45 percent a year ago.

Unlocking  of  deferred  acquisition  amortization  assumptions  resulted  in  a
decrease  of  approximately   $2.0  million  in  the  amortization  of  deferred
acquisition  costs.  Insurance  operating  expenses  declined  20 percent in the
second quarter and 21 percent in the six months,  reflecting  savings  resulting
from the consolidation of Sunset Life's operations into the home office.

This segment's  operating  income  increased by more than  three-fourths  in the
second quarter and by 24 percent in the six months.  This segment contributed 11
percent of  consolidated  insurance  revenues  and 19  percent  of  consolidated
operating  income in the six  months,  compared  with 10 percent and 21 percent,
respectively, a year ago.

Old American

Old American's new annualized premiums increased 2 percent in the second quarter
and 1 percent in the first half. Old American contributed 7 percent of total new
annualized premiums, consistent with the previous year.

Total insurance  revenues  declined 2 percent in both the second quarter and the
first half. Total benefits decreased 5 percent for the second quarter,  but were
flat for the six months. Mortality experience improved in the second quarter and
was  unchanged  for the first  half.  Surrenders  rose 13  percent in the second
quarter  and 15  percent  in the six  months.  Total  benefits  as a percent  of
operating  revenue equaled 59 percent in the first half, down from 65 percent at
the first quarter,  but level with a year ago. This segment's operating expenses
declined 15 percent in the second quarter and 9 percent in the six months.

Operating  income for this  segment  almost  doubled in the second  quarter  and
increased by 70 percent in the six months.  This segment  provided 13 percent of
consolidated  operating income and 28 percent of consolidated insurance revenues
for the six months,  compared to 10 percent and 29 percent,  respectively,  last
year.

Liquidity and Capital Resources

Statements made in the Company's Annual Report to Stockholders remain pertinent.
Liquidity is not a concern for the Company.  For the six months,  cash  provided
from operating  activities  declined 2 percent to $33.1 million.  Funds from all
sources  totaled $401.9 million,  a 12 percent  decrease from last year. At June
30, 2000 the  Company had $34.5  million of  short-term  borrowings,  down $35.0
million  from year end.  The Company  uses these  borrowings  in order to pursue
interest spread  strategies.  At period end,  separate  accounts  totaled $308.9
million, an increase of $49.0 million from year end.

Assets  totaled  $3.6  billion,  the  same as  year  end.  Excluding  unrealized
investment gains and losses,  assets remained flat with last year.  Consolidated
insurance in force totaled $27.3 billion,  a 4 percent increase on an annualized
basis.  Book value per share  totaled  $42.26,  an  increase  of 7 percent on an
annualized basis.  Excluding changes in unrealized  investment gains and losses,
book value per share equaled $47.04, an annualized growth of 8 percent.

During the first half, the Company  purchased 123,000 shares of its common stock
for $3.9 million under the stock repurchase program. The Company may purchase up
to one million shares during 2000 under this program.

The Board of  Directors  declared a quarterly  dividend  of $.25 per share,  a 4
percent  increase  over last  year's  dividend  of $.24 per  share.  Market  and
Interest Rate Risk Analysis

Statements  made in the 1999 Annual  Report to  Stockholders  pertaining  to the
market and interest rate risk  analysis  remain  pertinent.  As mentioned in the
Annual  Report,  the primary  market risk  affecting  Kansas City Life  concerns
interest  rates.  As market  interest  rates  fluctuate,  so will the  Company's
investment portfolio and its stockholders' equity. At June 30, 2000, the Company
had an unrealized  investment  loss of $57.5  million,  net of related taxes and
deferred policy  acquisition  costs,  up from the $53.4 million  unrealized loss
reported at year end 1999.  This  increase is primarily  the result of increased
interest rates in the corporate bond market during the six months.

Part II:  Other Information

Item 1.  Legal Proceedings

In recent years, the life insurance  industry,  including the Company,  has been
subject to an increase in litigation,  pursued on behalf of purported classes of
insurance  purchasers  questioning  the conduct of insurers in the  marketing of
their  products.  The Company  believes that the actions  described below and in
previous  filings are part of this trend.  The Company denies all allegations of
wrongdoing in these lawsuits and has been defending them vigorously.

In the previously reported case, Wright,  etc., v. Sunset Life Insurance Company
of America,  Circuit  Court of Clarke  County,  Alabama,  Case No.  CV-98-120-M,
plaintiff  alleged that Sunset Life breached her universal life contract when it
sent her a letter advising that her policy was underfunded and she needed to pay
additional  premiums in order to maintain  the current  level of death  benefit.
Plaintiff  sought  unspecified   damages  for  breach  of  contract  and  unjust
enrichment,  and  alleged  a  putative  class in which she  sought to  represent
herself  and  others  similarly  situated  nationwide.  Subsequently,  plaintiff
surrendered her policy and plaintiff's attorney dismissed her as a plaintiff and
filed an amended complaint substituting plaintiff's husband,  beneficiary of the
policy,  as plaintiff.  On June 5, 2000,  the trial court granted  Sunset Life's
motion to strike  and/or  dismiss the  amended  complaint,  and further  granted
Sunset Life's motion for summary judgment as to the original complaint.

Bette  Schwager,  On Behalf of Herself  and All Others  Similarly  Situated,  v.
Kansas City Life Insurance Company, United States District Court for the Western
District  of Texas,  Austin  Division,  Case No.  A-00-CA-424-JN.  This case was
originally filed in the 345th Judicial  District Court for Travis County,  Texas
on June 8, 2000 as Case No.  GN-001652.  The plaintiff alleges that the Company,
through its agents,  misrepresented the number of premiums that would be payable
on and the terms of life  insurance  policies  issued by the Company.  Plaintiff
further  alleges that an agent of the Company  represented  that the premiums on
the policy  insuring her husband would "vanish" when he reached age 67, and that
premiums  on  policies  insuring  her own life would  "vanish"  when she reached
retirement  age.  Further,  plaintiff  alleges  that  based upon these and other
misrepresentations,  she used the cash  value  in other  insurance  policies  to
purchase  policies from the Company.  Plaintiff alleges she recently learned her
premiums  will  never  vanish  under  the  policies.  Plaintiff  alleges  fraud,
fraudulent  concealment,  unfair discrimination,  breach of contract,  breach of
fiduciary  duty/constructive fraud, and negligent  misrepresentation.  Plaintiff
seeks compensatory and punitive damages,  reasonable  attorney fees and costs as
well as equitable and injunctive relief including reformation of the policies to
conform with plaintiff's  expectations,  imposition of a constructive trust upon
the policy  proceeds,  and an injunction  to prevent the Company from  canceling
plaintiff's and other class members'  policies.  Plaintiff  further alleges that
the  Company's  conduct  was part of a  statewide  fraudulent  scheme and common
course of  conduct,  and seeks to certify a class  composed  of all  persons and
entities who have (or had at the time of termination)  an ownership  interest in
one or more of the Company's  permanent  policies from and after January 1, 1986
to the  present.  The  Company  filed a Notice of Removal  to the United  States
District  Court for the Western  District of Texas on July 11, 2000.  Management
denies  the  allegations  of  the  complaint,   including  the  existence  of  a
certifiable class, and intends to defend this case vigorously.

In addition  to the above,  the  Company  and  certain of its  subsidiaries  are
defendants in litigation seeking punitive damages. Some of these lawsuits are in
jurisdictions   where   juries   sometime   award   punitive   damages   grossly
disproportionate to the actual damages.

Although no assurances  can be given and no  determinations  can be made at this
time as to the  outcome  of any  particular  lawsuit or  proceeding,  management
believes that the relief ultimately granted to plaintiffs in these lawsuits,  if
any,  would  have no  material  effect on the  Company's  business,  results  of
operations and financial position.

Item 6.

Reports on 8-K: There were no reports on Form 8-K filed for the six months ended
June 30, 2000.

                                   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
Richard L. Finn
Senior Vice President, Finance

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

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

Date:  August 4, 2000


                       Kansas City Life Insurance Company
                           Quarter ended June 30, 2000

                                     EXHIBIT

                        Quarterly Report to Stockholders


                                  Consolidated
                                 Balance Sheet
                                 (in thousands)

                                      June 30     December 31
                                        2000           1999
                                   -------------  -------------
Assets
Investments:
  Fixed maturities:
    Securities available for sale,
      at market                      $ 1,961,638      1,999,215
    Securities held to maturity,
      at amortized cost                   90,814        107,606
  Equity securities available
    for sale, at market                  103,788        115,968
  Mortgage loans                         352,197        340,704
  Short-term                              17,295         19,380
  Other                                  199,238        197,868
                                   -------------  -------------
                                       2,724,970      2,780,741

Cash                                      17,013         22,355
Deferred acquisition costs               245,057        236,370
Other assets                             325,762        321,919
Separate account assets                  308,925        259,899
                                   -------------  -------------

                                     $ 3,621,727      3,621,284
                                   =============  =============

Liabilities and equity
Future policy benefits               $   824,758        829,556
Accumulated contract values            1,647,362      1,688,706
Notes Payable                             34,500         69,500
Income taxes payable                       6,190          7,870
Other liabilities                        291,288        271,948
Separate account liabilities             308,925        259,899
                                   -------------  -------------
  Total liabilities                    3,113,023      3,127,479

Stockholders' equity:
  Capital stock                           23,121         23,121
  Paid in capital                         19,711         18,498
  Accumulated other comprehensive
    income (loss)                        (63,174)       (59,095)
  Retained earnings                      635,094        614,278
  Less treasury stock                   (106,048)      (102,997)
                                   -------------  -------------
                                         508,704        493,805
                                   -------------  -------------

                                     $ 3,621,727      3,621,284
                                   =============  =============

Notes:
*  Comprehensive income (loss) equals $22,761,000 and
   $(38,760,000) for 2000 and 1999, respectively,
   and $7,852,000 and $(25,797,000) for the second quarter
   of 2000 and 1999.  This varies from net income
   due to unrealized gains or losses on securities.

*  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 six months,
   12,036,642 shares (12,402,810 shares - 1999).

*  These interim financial statements should be read in
   conjunction with the Company's 1999 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 prioryear's financial statements
   have been reclassified to conform with the current year's
   presentation.

*  Segment information totals agree to the consolidated
   financial statements.  Intersegment revenues are not material.
   There has been no significant change in segment assets
   from last year end, nor has there been any changes in the
   basis of segmentation or the measure of segment income.



                                  Consolidated
                                Income Statement
                     (in thousands, except per share data)

                                              Quarter ended   Six Months ended
                                                  June 30          June 30
                                              2000     1999     2000     1999
                                            -------  -------  -------  -------
Revenues
Insurance revenues:
  Premiums:
    Life insurance                         $ 23,869   24,531   49,502   52,336
    Accident and health                      11,300   10,560   22,352   20,823
  Contract charges                           27,193   26,016   55,719   53,249
Investment revenues:
  Investment income, net                     53,175   52,076  103,817  102,569
  Realized gains                                (64)     368      422      677
Other                                         3,819    3,486    7,993    7,422
                                            -------  -------  -------  -------
    Total revenues                          119,292  117,037  239,805  237,076
                                            -------  -------  -------  -------
Benefits and expenses
Policy benefits:
  Death benefits                             30,008   28,647   58,779   56,156
  Surrenders of life insurance                4,147    3,865    8,618    7,426
  Other benefits                             18,366   18,384   35,731   34,437
  Increase in benefit and contract reserve   19,375   19,763   37,092   40,265
Amortization of policy acquisition costs      2,694    9,560   11,282   20,035
Insurance operating expenses                 25,163   26,300   49,802   50,647
                                            -------  -------  -------  -------
    Total benefits and expenses              99,753  106,519  201,304  208,966
                                            -------  -------  -------  -------

Pretax income                                19,539   10,518   38,501   28,110
                                            -------  -------  -------  -------
Federal income taxes:
  Current                                     5,130    5,119   11,317   10,954
  Deferred                                      687   (2,096)     344   (2,781)
                                            -------  -------  -------  -------
                                              5,817    3,023   11,661    8,173
                                            -------  -------  -------  -------

Net income                                $  13,722    7,495   26,840   19,937
                                            =======  =======  =======  =======

Per common share
  Operating income                           $ 1.15     0.58     2.21     1.57
  Realized gains, net                         (0.01)    0.03     0.02     0.04
                                            -------  -------  -------  -------

  Net income                                 $ 1.14     0.61     2.23     1.61
                                            =======  =======  =======  =======

  Cash dividends                             $ 0.25     0.24     0.50     0.48


                                  CONSOLIDATED
                            STATEMENT OF CASH FLOWS
                                 (in thousands)
                                                             Six Months ended
                                                                   June 30
                                                              2000         1999
Operating activities
  Net cash provided                                        $33,103       33,799

Investing activities
  Purchases of fixed maturities available for sale        (173,486)    (297,030)
  Sales of fixed maturities available for sale             156,830      149,424
  Sales of equity securities available for sale             28,926        7,609
  Maturities and principal paydowns of
    fixed maturity investments:
        Available for sale                                  47,220      105,941
        Held to maturity                                    19,855        9,438
  Purchases of other investments                           (56,922)     (64,356)
  Sales, maturities and principal paydowns
    of other investments                                    19,182       25,280
  Net sales of short-term investments                        2,296       18,929

  Net cash provided (used)                                  43,901      (44,765)

Financing activities
Policyowner contract deposits                               69,040       77,340
Withdrawals of policyowner
  contract deposits                                       (108,525)     (91,541)
Dividends paid to stockholders                              (6,024)      (5,955)
Proceeds from borrowings                                    25,400       30,000
Repayment of borrowings                                    (60,400)           0
Other, net                                                  (1,837)      (3,074)
  Net cash provided (used)                                 (82,346)       6,770

Decrease in cash                                            (5,342)      (4,196)
Cash at beginning of year                                   22,355       16,763
  Cash at end of period                                    $17,013       12,567

                       Kansas City Life Insurance Company
                           2000 Second Quarter Report


Message  from the President and CEO

     Kansas City Life achieved substantial earnings and sales growth in both the
second quarter and first half of the year.  Operating  earnings per share nearly
doubled in the second quarter to $1.15 while the six months'  earnings  improved
41  percent  to $2.21 a  share.  Since  there  was  little  change  in  realized
investment  gains in the  periods,  net  income  increased  largely in line with
operating  earnings.  Net income per share rose 87 percent and 39 percent in the
quarter and six months,  respectively.  Last year's  second  quarter,  which was
hampered by poor mortality  experience and Sunset  relocation  costs, was a weak
quarter historically.

     Earnings  growth was  driven  principally  by two  factors.  First,  pretax
earnings  benefited by approximately $4.0 million in the second quarter from the
unlocking of the original  assumptions  related to the  amortization of deferred
acquisition costs on the interest sensitive products. Actual earnings experience
has been more favorable than these assumptions  anticipated,  and they have been
revised to reflect these favorable  variations.  Second,  home office  operating
expenses  declined 9 percent in the  quarter and 5 percent in the first half due
in  large  measure  to  the  improved  operating  efficiencies  realized  by the
assimilation of Sunset Life's operations into the home office.

     Sales, in terms of new annualized premiums,  rose 20 percent in the quarter
and 5 percent for the six months.  Strong growth in variable  universal life and
annuity products,  45 percent for the quarter and 37 percent for the first half,
offset sales  declines in the interest  sensitive  products.  Variable  products
contributed  nearly  two-thirds of this year's sales.  Sales of group  products,
despite the  discontinuance  this year of the stop loss line,  grew 9 percent in
the quarter,  but declined 5 percent year to date. Excluding the stop loss line,
group  sales rose 14 percent in the first half  largely  due to  improved  group
dental sales.  Insurance in force topped $27 billion for the first time, growing
4 percent on an annualized basis.

     Insurance  premiums were unchanged in the quarter but declined 2 percent in
the six months. Contract charge revenues, generated by the variable and interest
sensitive  lines of  business,  increased  5 percent in both the quarter and the
first half.

     Investment  earnings  rose 2 percent in the quarter  and 1 percent  year to
date. A 34 basis point rise in the  portfolio's  earned  yield  ovecame a slight
decline in earning assets. However,  investment margins narrowed somewhat on our
interest sensitive products.

     Generations  Bank,  our new  banking  affiliate,  was  capitalized  at $6.0
million  at the end of the  quarter.  The bank  began  offering a package of new
financial products on July 3rd.

     Book value per share equals $42.26,  a 7 percent  annualized  increase from
the beginning of the year. Excluding the effects of unrealized  investment gains
and losses, book value equals $47.04 a share, an 8 percent annualized increase.

     This year Kansas City Life has purchased  123,000 of its shares on the open
market at a cost of $3.9 million. The Board of Directors previously approved the
purchase of up to one million shares.

     The  Board of  Directors  approved  a  quarterly  dividend  of $.25 a share
payable August 21st to stockholders of record on August 7th.

Segment Information
                                        Quarter ended        Six Months ended
                                           June 30                June 30
                                       2000      1999        2000       1999

Revenues from external customers:
 KCL individual                      $25,612    26,367      54,535     55,941
 KCL group                            14,503    13,052      28,393     26,121
 Sunset Life                           7,392     5,871      15,030     13,411
 Old American                         18,674    19,303      37,608     38,357

     Total                           $66,181    64,593     135,566    133,830

Investment revenues:
 KCL individual                      $40,276    39,748      78,396     78,411
 KCL group                               183       318         370        600
 Sunset Life                           8,636     8,300      16,975     16,368
 Old American                          4,080     3,710       8,076      7,190

     Total                           $53,175    52,076     103,817    102,569

Operating income (loss):
 KCL individual                       $8,054     4,965      17,408     13,483
 KCL group                               220      (604)        597       (142)
 Sunset Life                           2,796     1,545       5,178      4,167
 Old American                          2,692     1,350       3,382      1,989

     Total                           $13,762     7,256      26,565     19,497
Includes our subsidiaries:

Sunset Life Insurance
Company of America


Old American
Insurance Company

Post Office Box 219139
Kansas City, Missouri 64121-9139
Listing: OTC
Stock Symbol: KCLI