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, 1999


                          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 July  6, 1999

Common Stock, $1.25 par value           12,394,448 shares

                         Page 1



                       Kansas City Life Insurance Company
                          Quarter ended June 30, 1999





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 1998 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 37
percent in the second quarter compared with last year to $0.58.
Including realized gains, which declined $2.1 million from last
year's second quarter, net income equaled $0.61 per share, a 42
percent decline.  For the six months, operating earnings per
share declined 1 percent to $1.57 and net income per share
declined 13 percent to equal $1.61.  Net income included a $4.3
million decline in realized gains.  These earnings per share
amounts reflect the two-for-one common stock split that occurred
in June.  The operating earnings decline is primarily the result
of mortality declines from the first quarter and an increase in
expenses incurred as a result of the consolidation of Sunset
Life's operations into the home office.



Net investment income decreased 1 percent in the second quarter
but was flat for the six months.  The net yield on the
investment portfolio on a cost basis declined to 7.21 percent
from 7.27 percent a year ago.  Realized investment gains
declined generally due to rising interest rates which have
resulted in significantly reduced investment calls on the
portfolio.  Interest spreads on the interest sensitive products
improved as the yield spreads widened.



Home office operating expenses rose 8 percent versus 1998's
second quarter and rose 4 percent for the six months.  During
the quarter almost all of the administrative aspects of Sunset
Life were consolidated into the home office in Kansas City.
This consolidation required a necessary duplication of staffing
at both locations for a time during the quarter to ensure that
the services to both policyholders and agents were as smooth as
possible during this consolidation.  In addition, several
one-time expenditures were incurred for travel, consulting and
relocation.  The consolidation continues on schedule.  The
remaining aspects will be consolidated in the third quarter with
the expected beneficial savings beginning to be realized later
this year.



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



                       Kansas City Life Insurance Company
                              Segment Information


                          Kansas City Life     Sunset       Old
                         Individual   Group     Life      American     Total

Revenues from external customers:
 Six Months:     1999      $55,941    26,121   13,411      38,357     133,830
                 1998       56,596    25,993   14,349      40,403     137,341
 Second Quarter: 1999       26,367    13,051    5,871      19,303      64,592
                 1998       30,498    13,124    7,523      20,114      71,259

Investment revenues:
 Six Months:     1999      $75,800       600   16,399       7,191      99,990
                 1998       76,253       563   16,333       7,046     100,195
 Second Quarter: 1999       38,399       318    8,287       3,712      50,716
                 1998       38,921       312    8,313       3,607      51,153

Operating Income (loss):
 Six Months:     1999      $13,484      (142)   4,167       1,989      19,498
                 1998       13,315      (868)   4,858       2,285      19,590
 Second Quarter: 1999        4,966      (604)   1,546       1,350       7,258
                 1998        7,220      (508)   2,824       1,956      11,492

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.



Kansas City Life - Individual


New annualized premiums declined 16 percent in the second
quarter, as individual life sales were down 9 percent and
flexible annuities declined 23 percent.  Non-variable universal
life sales declined 34 percent but were somewhat offset by a 6
percent increase in variable universal life sales.  For the six
months, new annualized premiums fell 6 percent as individual
life products declined 24 percent and flexible annuities fell 4
percent.  Non-variable universal life sales were down 43 percent
for the six months and variable universal life products were
down 16 percent.  Total new variable sales were down 15 percent
for the second quarter and were down 8 percent for the six
months.  Variable product sales accounted for 63 percent of
total sales for the six months.  On the basis of direct
statutory receipts, new sales declined 14 percent for the six
months.  New variable sales fell 11 percent and equaled 62
percent of total new sales.


Total insurance revenues, which include premium renewals and
contract charges on the interest sensitive products, decreased
14 percent for the second quarter and 1 percent for the six
months.


Death benefits rose 1 percent for the quarter but were down 1
percent for the six months.  However, mortality experience for
the assumed block of business purchased two years ago was much
worse than expected in the second quarter.  Traditional life
surrenders fell 22 percent for the quarter and 30 percent for
the six months.  In total, benefits declined 2 percent for this
segment in both the second quarter and six months.  Reflecting
the mortality experience, total benefits, as a percent of
operating revenue, equaled 62 percent for the six months up from
the 58 percent for the first quarter, but down slightly from 63
percent a year ago.


This segment provided 42 percent of insurance revenues for the
six months and 69 percent of the operating income compared with
41 percent and 68 percent last year.


Kansas City Life - Group


In the second quarter, the group segment recorded a loss, as the
claims ratios increased during the quarter.  The loss for the
six months was $0.7 million less than a year ago.  This
improvement in the stop loss and dental lines was due to
improved claims ratios.

Group sales, in terms of new annualized premiums, rose 26
percent in the quarter and 27 percent for the six months.  Group
sales provided 10 percent of consolidated annualized premiums,
up from 8 percent last year.  These sales were led by group
life, which more than doubled, and dental, which grew 18 percent.

In total, the group segment provided 20 percent of consolidated
insurance revenues for the six months compared with 19 percent
last year.


Sunset Life


Sunset Life's new annualized premiums declined 31 percent in the
second quarter and 25 percent for the six months.  Total
individual life sales were down 51 percent for the quarter and
39 percent for the six months.  However, traditional life sales,
largely term, were up 20 percent for the six months.  Sales of
flexible annuities were up 21 percent for the second quarter but
were down 4 percent for the six months.  Sunset Life contributed
7 percent of total new annualized premiums during the first six
months versus 9 percent in 1998.

Insurance revenues decreased 4 percent reflecting the sales
results.  Benefits, as a percent of operating revenues, equaled
44 percent, down from 48 percent a year ago.  This decline is
primarily due to improved mortality compared with a year ago.
Total benefits declined 9 percent, reflecting a similar decline
in death benefits.

Insurance operating expenses rose 21 percent for the six months
versus 1998.  This increase is attributable to the consolidation
efforts.  As mentioned above, the operations are being
consolidated from Olympia to Kansas City resulting in additional
expenses being incurred in both Kansas City and Olympia during
the transition effort.  However, anticipated cost savings will
begin to emerge the latter half of this year.

In total for Sunset Life, operating income declined 14 percent
but contributed 13 percent of consolidated operating revenues
and 21 percent of operating income for the six months.


Old American

New annualized premiums declined 10 percent in the second
quarter and were down 5 percent for the six months.  Old
American provided 7 percent of consolidated sales, consistent
with the previous year.  This segment also provided 29 percent
of consolidated insurance revenues for the six months, the same
as last year.

Total benefits declined 10 percent for the quarter and 11
percent for the six months.  Benefits, as a percent of operating
revenues, equaled 59 percent compared with 64 percent a year
ago.  This improvement was due to improved mortality and
partially due to the sale of the home health care block of
business last year.

Operating income for this segment declined 13 percent for the
six months to equal 10 percent of consolidated operating income,
down from 12 percent last year.


Liquidity and Capital Resources

Statements made in the Company's 1998 Annual Report to
Stockholders remain pertinent.

Liquidity is not a concern for the Company.  For the six months,
cash provided from operating activities nearly doubled to $33.8
million.  Funds from all sources totaled $457.8 million, a 2
percent increase over last year.  During the first six months,
the Company made new investments in excess of one-third of a
billion dollars.  During the second quarter the Company borrowed
$30.0 million in order to leverage the borrowed monies.  At June
30, 1999, separate accounts totaled $189.5 million, an increase
of $46.5 million from year end.

Assets totaled $3.6 billion at June 30, 1999, the same as year
end.  However, excluding unrealized investment gains, assets
grew at a 6 percent annualized growth rate.  Consolidated
insurance in force totaled $26.2 billion, a 3 percent decline on
an annualized basis.  Book value per share totaled $42.96, a
decline of 16 percent on an annualized basis.  However,
excluding changes in unrealized investment gains and losses,
book value per share equaled $43.54, a 5 percent annualized
growth.

During the first six months, the Company purchased 14,000 shares
of its common stock for $567,000 under the stock repurchase
program announced last January.


Year 2000 (Y2K) Compliance

Kansas City Life is closely monitoring its ability, and the
ability of its primary vendors and business partners, to
successfully operate in the year 2000.  Kansas City Life
continues the assessment and resolution of potential problems in
both its information  technology (IT) systems and in its
non-information technology systems. At the present time, the
Company is approximately 90 to 95 percent complete with
resolving its IT issues and anticipates that it will have
completed its year 2000 IT compliant issues by the end of the
third quarter.  For the remainder of the year, the Company plans
to continue its testing and to finalize contingency plans.  The
Company's non-IT systems are fully compliant.  The Company is
actively monitoring the compliance programs of those third
parties with which the Company has business relationships as
well as modifying its contingency plans based upon those
assessments.  These third parties are continuing to progress
well, but the Company will continue to monitor these third
parties until full compliance is achieved.  The incremental cost
of the Company's  compliance effort generally has been expensed
as incurred and has not been material thus far, estimated at
less than  $700,000, nor are additional costs expected to be
material in the future. The forecast costs, consequences of the
year 2000 problem, and the dates on which the Company believes
it will complete its various year 2000  computer modifications
are based on its best estimates, which, in turn, were based on
numerous assumptions of future events, including third-party
modification and compliance plans, continued availability of
resources, and other factors.  The Company  cannot be sure that
these estimates will be achieved or that the assumptions are
accurate, and actual results could differ materially from those
anticipated.


Market and Interest Rate Risk Analysis

Statements made in the 1998 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,
1999, the Company had an unrealized investment loss of $13.2
million, net of related taxes and deferred policy acquisition
costs.  This represents a $58.7 million decline from the $45.5
million unrealized gain reported at the beginning of the year.
This decline is the result of increased market interest rates.



Part II:  Other Information

(a)  Exhibits: None.

(b)  Reports  on 8-K:  There  were no  reports  on Form 8-K  filed for the three
     months ended June 30, 1999.


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 9, 1999


                       KANSAS CITY LIFE INSURANCE COMPANY

                          Quarter ended June 30, 1999

                                    EXHIBIT



                        Quarterly Report to Stockholders







Consolidated
Balance Sheet
(in thousands)

                                      June 30     December 31
                                        1999           1998
                                   -------------  -------------
Assets
Investments:
  Fixed maturities:
    Securities available for sale,
      at market                      $ 2,037,992      2,094,362
    Securities held to maturity,
      at amortized cost                  105,954        115,504
  Equity securities available
    for sale, at market                  117,162        100,749
  Mortgage loans                         331,555        315,706
  Policy loans                           120,788        122,860
  Other                                  125,577        142,387
                                   -------------  -------------
                                       2,839,028      2,891,568

Deferred acquisition costs               222,858        218,957
Other assets                             332,761        323,881
Separate account assets                  189,467        143,008
                                   -------------  -------------

                                     $ 3,584,114      3,577,414
                                   =============  =============

Liabilities and equity
Future policy benefits               $   827,372        822,343
Accumulated contract values            1,711,506      1,731,262
Other liabilities                        323,346        302,868
Separate account liabilities             189,467        143,008
                                   -------------  -------------
  Total liabilities                    3,051,691      2,999,481

Stockholders' equity:
  Capital stock                           23,121         23,121
  Paid in capital                         18,185         17,633
  Accumulated other comprehensive
    income (loss)                        (13,231)        45,466
  Retained earnings                      594,847        581,074
  Less treasury stock                    (90,499)       (89,361)
                                   -------------  -------------
                                         532,423        577,933
                                   -------------  -------------

                                     $ 3,584,114      3,577,414
                                   =============  =============

Notes:
*  Comprehensive income (loss) equals $(38,760,000) and
   $30,908,000 for 1999 and 1998, respectively,
   and $(25,797,000) and $17,076,000 for the second quarter
   of 1999 and 1998.  This varies from net income
   due to unrealized gains or losses on securities.

*  These interim financial statements should be read in
   conjunction with the Company's 1998 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.

*  Income per common share is based upon the weighted
   average number of shares outstanding during the six
   months, 12,402,810 shares (12,389,594 shares - 1998).

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

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



Consolidated
Income Statement
(Thousands, except per share data)
                                              Quarter ended   Six Months ended
                                                  June 30        June 30
                                              1999     1998     1999     1998
                                            -------  -------  -------  -------
Revenues
Insurance revenues:
  Premiums:
    Life insurance                         $ 24,531   27,956   52,336   54,052
    Accident and health                      10,560   10,705   20,823   21,073
  Contract charges                           26,015   27,649   53,248   54,929
Investment revenues:
  Investment income, net                     50,715   51,152   99,990  100,194
  Realized gains                                368    2,434      677    4,961
Other                                         3,488    4,950    7,424    7,289
                                            -------  -------  -------  -------
    Total revenues                          115,677  124,846  234,498  242,498
                                            -------  -------  -------  -------
Benefits and expenses
Policy benefits:
  Death benefits                             28,647   26,055   56,156   58,062
  Surrenders of life insurance                3,865    4,932    7,426    9,765
  Other benefits                             18,384   20,086   34,437   36,990
  Increase in benefit and contract reserve   19,764   23,857   40,266   42,780
Amortization of policy acquisition costs      9,560    8,600   20,035   17,117
Insurance operating expenses                 24,939   22,707   48,068   45,954
                                            -------  -------  -------  -------
    Total benefits and expenses             105,159  106,237  206,388  210,668
                                            -------  -------  -------  -------

Pretax income                                10,518   18,609   28,110   31,830
                                            -------  -------  -------  -------
Federal income taxes:
  Current                                     5,119    4,899   10,954    9,663
  Deferred                                   (2,096)     637   (2,781)    (647)
                                            -------  -------  -------  -------
                                              3,023    5,536    8,173    9,016
                                            -------  -------  -------  -------

Net income                                 $  7,495   13,073   19,937   22,814
                                            =======  =======  =======  =======

Per common share:
  Operating income                           $ 0.58     0.93     1.57     1.58
  Realized investment gains, net               0.03     0.13     0.04     0.26
                                            -------  -------  -------  -------

  Net income                                 $ 0.61     1.06     1.61     1.84
                                            =======  =======  =======  =======




    CONSOLIDATED
STATEMENT OF CASH FLOWS
   (in thousands)
                                                     Six Months ended
                                                         June 30
                                                     1999        1998
 Operating activities
   Net cash provided                               $33,799       17,248

 Investing activities
   Purchases of fixed maturity investments        (297,030)    (318,881)
   Sales of fixed maturity investments             149,424      179,522
   Maturities and principal paydowns of
     fixed maturity investments                    115,379      118,667
   Purchases of other investments                  (64,356)     (64,991)
   Sales, maturities and principal paydowns
     of other investments                           32,889       36,611
   Net sales of short-term investments              18,929        9,540

   Net cash used                                   (44,765)     (39,532)

 Financing activities
 Policyowner contract deposits                      77,340       88,322
 Withdrawals of policyowner
   contract deposits                               (91,541)    (100,791)
 Dividends paid to stockholders                     (5,955)      (5,576)
 Proceeds from borrowings                           30,000            0
 Other, net                                         (3,074)      (1,502)

    Net cash provided (used)                         6,770      (19,547)

 Decrease in cash                                   (4,196)     (41,831)
 Cash at beginning of year                          16,763       50,927

    Cash at end of period                          $12,567        9,096






Kansas City Life Insurance Company
Second Quarter Report


Message from the President and CEO

     Kansas  City Life's  strong  earnings  growth in the first  quarter was not
sustained  in the  second  quarter.  Operating  earnings  fell 37 percent in the
second  quarter,  from  $.93 a share  last  year to $.58 a share  this  quarter.
Operating  earnings declined slightly for the first half of the year, from $1.58
a share in 1998 to $1.57 a share this year.  Realized  investment gains declined
$4.3 million in the six months and $2.1 million in the second quarter. Therefore
net  income  decreased  12  percent  in the  first  half to $1.61 a  share,  and
decreased 42 percent in the second quarter to $.61 a share.

     Mortality  experience at each of our  operating  companies was excellent in
the first quarter but generally  returned to historical trends during the second
quarter. Additionally,  mortality experience in the block of insurance purchased
two years ago was  considerably  worse than expected in the second quarter.  The
quarter's  earnings were also restrained by costs associated with the relocation
of Sunset Life's  operations into the home office in Kansas City. The relocation
effort  resulted in duplicate  staffing in Olympia and Kansas City for a portion
of the quarter and one-time  expenditures were incurred for costs such as travel
and consulting.  This effort is proceeding on schedule and according to plan and
should provide beneficial cost savings beginning later this year.

     Sales  momentum  generally  slowed in the second  quarter.  New  annualized
premiums declined 8 percent in the first half due to a 17 percent decline in the
second  quarter.  Percentage  declines in variable  product sales mirrored these
results,  and these products  contributed just over half of the Company's sales.
Universal  life sales  declined  46 percent  in the six  months  while  sales of
flexible annuities were down 1 percent.  Progress was made in our group products
where sales rose 27 percent,  led by dental and group life.  Life  insurance  in
force declined slightly to $26.2 billion.

     Insurance revenues in the attached earnings statement declined 3 percent in
the half and 8 percent in the quarter.  Life premiums declined 3 percent for the
six months while  accident  and health  premiums  decreased 1 percent.  However,
excluding  1998  premiums  associated  with the home health care block sold late
last year, accident and health premiums rose 7 percent, reflecting growth in the
group stop loss and dental lines. Contract charges on our interest sensitive and
variable products declined 3 percent in the first half.

     Investment  income was unchanged for the six months and decreased 1 percent
in the second quarter as investment assets, on a cost basis, grew 2 percent over
the past twelve months.  The portfolio's net yield declined to 7.21 percent from
7.27  percent a year ago.  Realized  investment  gains  declined  in the  period
principally due to reduced calls on the securities  portfolio as market interest
rates rose.

     Book value per share  declined  to $42.96 due to  reductions  in the market
value of our marked-to-market  investments as a result of rising interest rates.
Excluding  these  unrealized  losses,  book value  equaled  $43.54 a share,  a 5
percent annualized increase for the six months.

     A regular  quarterly  dividend of $.24 a share was declared by the Board of
Directors.  The  dividend  will be paid August 23 to  stockholders  of record on
August 9.


                                  /s/  R. Philip Bixby



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