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, 2001


                           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 April 30, 2001
Common Stock, $1.25 par value                         12,009,236 shares




                       Kansas City Life Insurance Company
                          Quarter ended March 31, 2001

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 2000 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  declined 24 percent from last
year to equal $.80.  Including  realized gains and losses,  net income per share
equaled  $.79, a decrease of 27 percent from last year.  The decline in earnings
was mostly due to  unfavorable  mortality,  as benefits  rose as a percentage of
revenues  from 57 percent  to 61  percent  and home  office  operating  expenses
increased as well. Insurance revenues declined 4 percent in the quarter.

Net  investment  income  increased 1 percent in the first  quarter as investment
margins for the interest sensitive products widened during the first quarter. It
is  important  to  note  that  funds  generated  by the  variable  products  are
segregated into separate accounts and do not generate  investment income for the
Company.

Home office  operating  expenses rose 6 percent  versus the prior year primarily
due to three  factors.  First,  operating  and  support  costs  associated  with
Generations  Bank rose since the bank was not yet operating a year ago.  Second,
the Company is incurring  costs this year for its required  triennial  statutory
financial examination. Third, legal costs have risen year-to-year.

The  following  schedule  addresses  the  financial  performance  of each of the
Company's four  reportable  operating  segments:  the Parent  Company,  which is
divided  between its  individual  and group  operations,  and its two  insurance
affiliates.

<TABLE>
<CAPTION>

                       Kansas City Life Insurance Company
                               Segment Information

                                            Kansas City Life          Sunset         Old
                                         Individual      Group         Life        American     Total

Revenues from external customers:
<S>                               <C>     <C>            <C>           <C>         <C>          <C>
           First quarter:         2001    $27,004        14,323        6,286       18,385       65,998
                                  2000     28,923        13,890        7,638       18,934       69,385

Investment revenues:
           First quarter:         2001    $38,201           196        8,395        4,244       51,036
                                  2000     38,119           187        8,339        3,997       50,642

Operating income:
           First quarter:         2001    $ 6,309           147        1,998        1,195        9,649
                                  2000      9,354           377        2,382          690       12,803
<FN>

Notes:
1.     Intersegment revenues are not material.
2.     The above totals agree to the consolidated financial statements.
3.     There has been no significant change in segment assets from last year end, nor has there been any change in the basis of
       segmentation or the measurement of segment income.
</FN>
</TABLE>


Kansas City Life - Individual

Total  new  annualized  premiums  declined  12  percent  in the  first  quarter.
Non-variable  flexible  annuity sales  increased 20 percent  during the quarter.
This  increase  was  partially  offset by a 20 percent  decline in  non-variable
universal  life  sales and a 43  percent  decline  in  traditional  life  sales.
Variable  universal  life sales  declined 25 percent and variable  annuity sales
declined 16 percent,  largely  reflecting the unsettled  stock market.  Variable
product  sales  accounted for 69 percent of this  segment's  total sales for the
three months,  down from 75 percent a year ago. This segment provided 77 percent
of consolidated  new annualized  premiums for the first quarter,  compared to 79
percent a year ago.

Total insurance revenues, which include premium renewals and contract charges on
the  interest  sensitive  products,  declined 4 percent for this  segment in the
first  quarter.  However,  half of the  decline  in  contract  charges is due to
reduced surrender charges reflecting decreased policy surrenders.

Total benefits for this segment increased 8 percent in the first quarter.  Death
benefits  increased 23 percent  versus last year.  Mortality  experience for the
interest  sensitive  products  was  less  favorable  than a year  earlier.  Such
fluctuations are a normal occurrence, especially in any one quarter. Traditional
life surrenders declined 22 percent in the three months.  Surrenders on interest
sensitive  products as a percent of the accumulated  value also declined.  Total
benefits,  as a percent of  operating  revenue,  equaled 61 percent in the first
quarter, compared to 55 percent a year ago, reflecting the mortality results.

Operating  income  declined  by 33 percent in the first  quarter.  This  segment
provided 41 percent of consolidated  insurance revenues in the first quarter and
65 percent of  consolidated  operating  income,  compared with 42 percent and 73
percent, respectively, last year.

Kansas City Life - Group

In  the  first  quarter,   the  group  segment  contributed  2  percent  of  the
consolidated operating income, down slightly from 3 percent a year ago. However,
the gross claims ratio declined slightly from 73 percent to 71 percent.

Group  sales,  in terms of new  annualized  premiums,  declined 6 percent in the
first quarter. The group segment provided 11 percent of consolidated  annualized
premiums for the first  quarter,  compared to 10 percent last year.  Group sales
were lead by the dental  line,  which  accounted  for 70 percent of total  group
sales.  However,  dental sales declined 24 percent  versus last year.  Partially
offsetting  this decline,  group life sales  increased 76 percent over last year
and sales of group disability more than doubled.

Total  benefits,  which includes  reserve  release and  reinsurance,  equaled 61
percent of revenues for the first  quarter,  versus 59 percent a year ago.  This
segment provided 22 percent of consolidated  insurance revenues,  compared to 20
percent last year.

Sunset Life

Sunset  Life's new  annualized  premiums  rose 11 percent in the first  quarter.
Flexible  annuity sales  increased 40 percent and universal life sales increased
11 percent over last year but were partially  offset by a 22 percent  decline in
traditional  life  sales.  This  segment  contributed  4  percent  of total  new
annualized  premiums during the first quarter, up slightly from 3 percent a year
ago.

Total  insurance  revenues  for this  segment  declined  19 percent in the first
quarter,  while total  benefits  increased  1 percent.  Death  benefits  rose 16
percent,  as mortality  experience  was also less  favorable  for this  segment.
Traditional  life  surrenders  were flat with last year and  interest  sensitive
surrenders   declined.   Largely   reflecting  the  deterioration  in  mortality
experience, total benefits, as a percent of operating revenue equaled 58 percent
in the first quarter, up from 52 percent last year.

Sunset Life's operating  income declined 16 percent from last year.  Sunset Life
contributed  10 percent of  consolidated  insurance  revenues  and 21 percent of
consolidated  operating  income in the first  quarter,  versus 11 percent and 19
percent, respectively, last year.

Old American

Old American's new annualized premiums increased 4 percent in the first quarter.
This segment contributed 8 percent of total new annualized premiums, up slightly
from 7 percent a year ago.

Total insurance revenues declined 3 percent in the first quarter. Total benefits
declined 8 percent.  Death  benefits  declined 7 percent in the first quarter as
this  segment's  mortality  experience  improved  from  last  year.   Surrenders
increased  7 percent  in the  first  quarter.  Total  benefits  as a percent  of
operating revenue equaled 61 percent compared with 65 percent a year ago.

Operating  income for this segment  increased  73 percent in the first  quarter.
This segment provided 12 percent of consolidated operating income and 28 percent
of consolidated insurance revenues for the first quarter,  compared to 5 percent
and 27 percent, respectively, last year.


Impact of Newly Adopted Accounting Principles

Financial   Accounting  Standard  (FAS)  No.  133,  "Accounting  for  Derivative
Instruments  and for Hedging  Activities,"  provides  comprehensive,  consistent
standards  for  the  recognition  and  measurement  of  derivative  and  hedging
activities. This standard was adopted January 1, 2001 and had no material effect
on net income or stockholders' equity.  However, this standard offered companies
the  opportunity  to  reclassify  investments  previously  identified as Held to
Maturity to either Available for Sale or Trading.  Accordingly, at adoption, the
Company reclassified all of its Held to Maturity securities,  which were carried
at amortized cost, to Securities  Available for Sale,  which are carried at fair
value in the financial statements.  The mark-to-market  adjustment, at adoption,
is included in Other Comprehensive Income.

On January  1, 2001,  the  Company  also  adopted  the  comprehensive  Statutory
Accounting Practices and Procedures (SSAP) guidelines for insurance companies as
issued by the National Association of Insurance Commissioners (NAIC),  generally
referred  to as  "codification."  While this  guide does not impact  stockholder
reporting,  which is based on accounting  principles  generally  accepted in the
United  States  of  America  (GAAP),  it does  govern  accounting  practice  and
procedures   required  for  reporting  to  state   regulators.   The  effect  on
consolidated  statutory income was not material and effect on statutory  surplus
was an increase of $15.1 million.


Liquidity and Capital Resources

Statements made in the Company's Annual Report to Stockholders remain pertinent.
Liquidity is not a concern for the Company. In the first quarter,  cash provided
from operating  activities declined 16 percent to $17.1 million.  Funds from all
sources totaled $332.3 million,  a 39 percent  increase over last year. At March
31,  2001 the  Company  had $79.3  million of  short-term  borrowings,  up $37.8
million  from year end.  The Company  uses these  borrowings  in order to pursue
interest  spread  strategies.  At March 31,  2001,  separate  accounts and other
investments  generated by the variable line totaled $317.8 million, a 35 percent
annualized decrease from year end. This decrease is the result of the volatility
associated with market-based investments.

Assets  totaled  $3.7  billion,  up from $3.6  billion  at year  end.  Excluding
unrealized  investment  gains and losses,  assets  remained  flat with year end.
Consolidated insurance in force totaled $26.7 billion, a 3 percent decline on an
annualized basis. Book value per share totaled $46.42, an increase of 19 percent
on an annualized basis.  Excluding unrealized  investment gains and losses, book
value per share equaled $48.35, an annualized growth of 4 percent.

During the first  quarter,  the Company did not purchase any of its shares under
the stock repurchase program. Under this program, the Company may purchase up to
one million shares during 2001.

The Board of  Directors  declared a quarterly  dividend of $.27 per share,  an 8
percent increase over last year's dividend of $.25 per share.

Market and Interest Rate Risk Analysis

Statements  made in the 2000 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 March 31,  2001,  the
Company had an unrealized investment loss of $23.3 million, net of related taxes
and deferred policy  acquisition  costs, down from the $43.8 million  unrealized
loss  reported  at year end 2000.  This  decrease  is  primarily  the  result of
decreased interest rates in the corporate bond market during the first quarter.

Part II:  Other Information

Item 4.  Result of Votes of Security Holders

On April 19, 2001,  the Annual  Stockholders  Meeting was held at 3520 Broadway,
Kansas City, Missouri. At this meeting, there were 12,034,687 shares outstanding
and eligible to vote,  and  11,104,285  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:

William R. Blessing        -11,010,084
Jack D. Hayes              -10,926,275
Cecil R. Miller            -11,012,959
Michael J. Ross            -11,034,991
Elizabeth T. Solberg       -11,015,107

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

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

Item 6.

Reports on 8-K:  There  were no  reports on Form 8-K filed for the three  months
ended March 31, 2001.


                                   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:  May 7, 2001


                                  Consolidated
                                 Balance Sheet
                                 (in thousands)

                                      March 31     December 31
                                        2001           2000
                                   -------------  -------------
Assets
Investments:
  Fixed maturities:
    Securities available for sale,
      at market                      $ 2,085,670      1,934,156
    Securities held to maturity,
      at amortized cost                        0         80,572
  Equity securities available
    for sale, at market                   95,616         94,270
  Mortgage loans                         405,206        396,731
  Short-term                              46,023         54,171
  Other                                  196,575        194,652
                                   -------------  -------------
                                       2,829,090      2,754,552

Cash                                       7,464         13,391
Deferred acquisition costs               241,203        244,960
Other assets                             293,080        308,210
Separate account assets                  292,921        325,148
                                   -------------  -------------

                                     $ 3,663,758      3,646,261
                                   =============  =============

Liabilities and equity
Future policy benefits               $   818,991        821,286
Accumulated contract values            1,618,571      1,619,887
Notes Payable                             79,278         41,520
Other liabilities                        295,348        306,166
Separate account liabilities             292,921        325,148
                                   -------------  -------------
  Total liabilities                    3,105,109      3,114,007

Stockholders' equity:
  Capital stock                           23,121         23,121
  Paid in capital                         20,966         20,109
  Accumulated other comprehensive loss   (34,767)       (55,280)
  Retained earnings                      656,845        651,324
  Less treasury stock                   (107,516)      (107,020)
                                   -------------  -------------
                                         558,649        532,254
                                   -------------  -------------
                                     $ 3,663,758      3,646,261
                                   =============  =============

Notes:
*  Comprehensive income equals $30,031,000 and
   $14,909,000, for 2001 and 2000, respectively.
   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 period,
   12,036,735 shares (12,034,516 shares - 2000).

*  These interim financial statements should be read in
   conjunction with the Company's 2000 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 financial statements
   have been reclassified to conform with the current
   presentation.



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

                                              Quarter ended
                                                 March 31
                                              2001     2000
                                             ------   ------
Revenues
Insurance revenues:
  Premiums:
    Life insurance                         $ 23,981   25,633
    Accident and health                      11,586   11,052
  Contract charges                           27,154   28,526
Investment revenues:
  Investment income, net                     51,036   50,642
  Realized gains (losses)                      (201)     486
Other                                         3,277    4,174
                                            -------  -------
    Total revenues                          116,833  120,513
                                            -------  -------

Benefits and expenses
Policy benefits:
  Death benefits                             31,402   28,771
  Surrenders of life insurance                3,815    4,471
  Other benefits                             18,356   17,365
  Increase in benefit and contract reserve   17,393   17,717
Amortization of policy acquisition costs      7,748    8,588
Insurance operating expenses                 25,090   24,639
                                            -------  -------
    Total benefits and expenses             103,804  101,551
                                            -------  -------
Pretax income                                13,029   18,962
                                            -------  -------
  Federal income taxes:
  Current                                     2,357    6,187
  Deferred                                    1,154     (343)
                                            -------  -------
                                              3,511    5,844
                                            -------  -------
Net income                                 $  9,518   13,118
                                            =======  =======
Per common share

  Net income                                 $ 0.79     1.09
                                            =======  =======


Cash dividends                               $ 0.27     0.25


                                  CONSOLIDATED
                            STATEMENT OF CASH FLOWS
                                 (in thousands)
                                                                Quarter ended
                                                                   March 31
                                                              2001       2000
 Operating activities
   Net cash provided                                        $17,134      20,328
                                                            -------     -------

 Investing activities
   Purchases of fixed maturities available for sale        (263,347)   (113,474)
   Sales of fixed maturities available for sale             190,074      87,328
   Sales of equity securities available for sale              1,668      28,925
   Maturities and principal paydowns of
     fixed maturity investments:
         Available for sale                                  33,301      22,780
         Held to maturity                                         0      13,681
   Purchases of other investments                           (18,037)    (29,914)
   Sales, maturities and principal paydowns
     of other investments                                     9,392      10,425
   Net sales of short-term investments                        6,879      12,546
                                                            -------     -------

   Net cash provided (used)                                 (40,070)     32,297
                                                            -------     -------

 Financing activities
 Policyowner contract deposits                               36,094      33,962
 Withdrawals of policyowner contract deposits               (40,068)    (53,912)
 Dividends paid to stockholders                              (3,997)     (3,015)
 Proceeds from borrowings                                    37,715       9,000
 Repayment of borrowings                                          0     (48,500)
 Other, net                                                 (12,735)     (2,949)
                                                            -------     -------

   Net cash provided (used)                                  17,009     (65,414)
                                                            -------     -------

 Decrease in cash                                            (5,927)    (12,789)
 Cash at beginning of year                                   13,391      22,355
                                                            -------     -------

   Cash at end of period                                     $7,464       9,566
                                                            =======     =======

Message  from the President and CEO

     Kansas City Life's operating  earnings declined 24 percent from last year's
record level to $.80 a share for the first quarter.  Much of the decline was due
to  considerably  less  favorable  mortality  experience  than a year ago.  Such
fluctuations,  especially  in any one  quarter,  are to be  expected in the life
insurance  business.  The Company also realized a small net investment loss this
quarter  compared  to a small net gain a year  earlier.  Therefore,  net income,
which includes these realized investment gains and losses,  decreased 27 percent
from $1.09 a share last year to $.79 a share this year.

     Sales  of  variable  universal  life and  annuity  products  were  impacted
negatively  by the slumping  stock  market.  Declines in these  products  caused
overall sales, in terms of new annualized  premiums,  to decline 10 percent. The
Company  offers a broad  spectrum of  insurance  products to meet its  customers
needs, from variable products,  to interest sensitive offerings,  to traditional
products  with fixed  investment  returns.  The  benefits of this broad  product
portfolio were apparent in the first quarter.  While  variable  insurance  sales
slowed,   new  premiums  from  flexible   annuity   products  rose  21  percent.
Additionally,  sales of traditional  final expense coverage to the senior market
increased 4 percent.  We anticipate renewed sales progress over the remainder of
the year since Kansas City Life will introduce  enhanced variable universal life
and annuity products next month, heightening these offerings' competitiveness.

     Insurance revenues in the enclosed financial statements declined 4 percent.
Life premiums  decreased 6 percent,  but accident and health  premiums,  largely
group dental premiums,  rose 5 percent.  While contract charges generated by the
interest  sensitive  and  variable  products  declined  5  percent,  half of the
decrease was due to a decline in surrender  charges,  reflecting  reduced policy
surrender  activity.  Life insurance in force totals $26.7 billion,  a 3 percent
annualized decline since the beginning of the year.

     Investment  income rose 1 percent,  mirroring the growth of the  investment
assets.  Investment  margins in our interest  sensitive  products widened in the
quarter, partially offsetting the mortality experience noted above.

     No Company shares were purchased under the stock repurchase  program during
the first quarter. However, Kansas City Life may repurchase up to one million of
its shares in the open market under the program during 2001.

     Stockholder  equity per share,  or book  value,  rose to $46.42.  Excluding
equity  fluctuations due to changes in our securities  portfolio's market value,
book value equaled $48.35 a share, a 4 percent annualized growth since the first
of the year.

     The Board of Directors  approved a $.27 a share quarterly  dividend payable
May 21 to stockholders of record on May 7.