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, 1997





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 3, 1997

Common Stock, $2.50 par value                   6,190,996 shares









Kansas City Life Insurance Company

Quarter ended June 30, 1997





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 1996 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  equaled  $3.05 for the six months,  a 14 percent
decrease from last year. Second quarter operating earnings decreased 15 percent.
Net  income per share  decreased  $0.10,  or 3 percent,  from $3.60 to $3.50 per
share  for  the six  months  and  declined  2  percent  in the  second  quarter.
Offsetting  much of the  decrease in  operating  income was a large  increase in
realized gains, from $0.5 million to $4.3 million.



Sales



Consolidated new annualized  premiums increased 7 percent in the second quarter,
reversing  the 1 percent  decline in the first  quarter.  In line with  industry
experience,  much of the  growth  in sales  has  come  from  variable  products.
Annualized  premiums for all group products  excepting dental are up 62 percent.
Group  dental is down 33 percent  as dental  products  experienced  triple-digit
growth  through the first half of last year.  Life  insurance  in-force  totaled
$22.3 billion at period end, a slight improvement from last year end.



Insurance Revenues



Insurance  revenues,  in total,  rose 4 percent for the six months and 9 percent
for the second  quarter.  Life  premiums  rose 4 percent  for the quarter due to
growth in both  individual and group life premiums,  but remained down 2 percent
year-to-date.  Accident and health premiums  increased 30 percent for the second
quarter  and 22 percent  for the first half of the year  principally  due to the
group dental  line.  Contract  charge  revenues on interest  sensitive  products
increased 6 percent for the quarter and 5 percent for the six months.



Investment Revenues



Investment  asset  growth  slowed due to the mix of  business  shifting  towards
variable and group products. This, coupled with slightly lower portfolio yields,
caused net  investment  income to decline 1 percent  for the quarter and for the
six months.  Investment  gains rose $1.9 million in the second  quarter and $3.8
million for the first half of the year  largely  due to calls on the  securities
portfolio.



Benefits



Total  benefits  grew 5 percent  for the six months and 9 percent for the second
quarter. Mortality experience,  which fluctuates period-to-period by its nature,
was adverse in the first half of this year as reflected in a 19 percent increase
in death benefits.  Other benefits also increased both  year-to-date and for the
quarter, 6 percent and 8 percent respectively. This increase stemmed mostly from
the group health lines of business.
 Traditional  life  surrenders  improved,  down 9  percent  year-to-date  and 10
percent in the second  quarter.  Total policy  benefits  equaled 59.9 percent of
revenues thus far in 1997 compared to 59.6 percent in the first half of 1996.



Other Expenses



Insurance operating expenses include commissions, capitalized policy acquisition
costs and home office  operating  expenses.  Departing from the Company's recent
history of flat or declining  home office  operating  expenses,  these  expenses
increased 6 percent  thus far in 1997.  The increase is focused in the group and
individual marketing areas in support of an effort to increase revenues.



Liquidity and Capital Resources



Statements  made in the  Company's  1996 Annual  Report to  Stockholders  remain
pertinent.



Cash provided from operating activities decreased 45 percent for the six months,
principally  reflecting the changing product mix and increased benefit payments.
Funds from all sources totaled $363.5 million, up 7 percent versus last year due
to increased sales of investments.



Total assets of $3.0 billion at June 30  represents a small  increase  from year
end.  Unrealized  gains and losses on  available-for-sale  securities had little
impact on  stockholders'  equity and book value.  Reported  book value per share
equaled $77.42, a 7 percent annualized improvement since last year end.

<PAGE>




Part II:  Other Information



Item 6.



(a)  Exhibits:  None



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

 June 30, 1997.



<PAGE>




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









---------------------------

Richard L. Finn

Senior Vice President, Finance





---------------------------


John K. Koetting

Vice President and Controller





---------------------------


C. John Malacarne

Vice President, General Counsel and Secretary







Date:  August 8, 1997































KANSAS CITY LIFE INSURANCE COMPANY

Quarter ended June 30, 1997

EXHIBIT



Quarterly Report to Stockholders











Consolidated
Balance Sheet
(in thousands)

                                      June 30     December 31
                                        1997           1996
                                   -------------  -------------
Assets
Investments:
  Fixed maturities:
    Securities available for sale,
      at market                      $ 1,799,516      1,759,153
    Securities held to maturity,
      at amortized cost                  197,148        248,433
  Equity securities available
    for sale, at market                   87,152         79,018
  Mortgage loans                         248,724        246,493
  Real estate, net                        43,327         43,750
  Real estate joint ventures              42,000         28,356
  Policy loans                            93,608         94,412
  Short-term                              25,124         19,642
  Other                                    5,500              0
                                   -------------  -------------
                                       2,542,099      2,519,257

Deferred acquisition costs               209,676        207,020
Other assets                             212,284        214,517
Separate account assets                   25,838         13,916
                                   -------------  -------------

                                     $ 2,989,897      2,954,710
                                   =============  =============

Liabilities and equity
Future policy benefits               $   705,176        701,560
Accumulated contract values            1,549,494      1,544,714
Other liabilities                        230,132        231,656
Separate account liabilities              25,838         13,916
                                   -------------  -------------
  Total liabilities                    2,510,640      2,491,846

Stockholders' equity:
  Capital stock                           23,121         23,121
  Paid in capital                         15,481         14,761
  Unrealized gains (losses) on
    securities available for sale          3,139          2,963
  Retained earnings                      525,941        509,748
  Less treasury stock                    (88,425)       (87,729)
                                   -------------  -------------
                                         479,257        462,864
                                   -------------  -------------

                                     $ 2,989,897      2,954,710
                                   =============  =============

Notes:
*  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 quarter, 6,189,331 shares (6,185,168 shares - 1996).

*  These interim  financial  statements  should be read in conjunction  with the
   Company's 1996 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   Six Months ended
                                                 June 30          June 30
                                              1997     1996     1997     1996
                                            -------  -------  -------  -------
Revenues
Insurance revenues:
  Premiums:
    Life insurance                         $ 25,990   25,076   50,637   51,856
    Accident and health                      11,022    8,449   21,754   17,857
  Contract charges                           20,429   19,362   40,885   39,017
Investment revenues:
  Investment income, net                     45,858   46,435   92,527   93,362
  Realized gains                              1,472     (474)   4,295      470
Other                                         3,690    2,415    6,367    5,136
                                            -------  -------  -------  -------
    Total revenues                          108,461  101,263  216,465  207,698
                                            -------  -------  -------  -------
Benefits and expenses
Policy benefits:
  Death benefits                             27,012   21,766   50,817   42,580
  Surrenders of life insurance                3,420    3,815    7,063    7,755
  Other benefits                             16,537   15,284   32,566   30,762
  Increase in benefit and contract reserve   19,831   20,615   39,249   42,596
Amortization of policy acquisition costs      7,966    7,408   16,632   14,965
Insurance operating expenses                 21,367   18,697   41,438   37,319
                                            -------  -------  -------  -------
    Total benefits and expenses              96,133   87,585  187,765  175,977
                                            -------  -------  -------  -------

Pretax income                                12,328   13,678   28,700   31,721
                                            -------  -------  -------  -------
Federal income taxes:
  Current                                     4,427    5,890   11,667   13,542
  Deferred                                   (1,604)  (1,906)  (4,606)  (4,063)
                                            -------  -------  -------  -------
                                              2,823    3,984    7,061    9,479
                                            -------  -------  -------  -------

Net income                                 $  9,505    9,694   21,639   22,242
                                            =======  =======  =======  =======

Per common share
  Operating income                           $ 1.39     1.62     3.05     3.55
  Realized gains, net                          0.15    (0.05)    0.45     0.05
                                            -------  -------  -------  -------

  Net income                                 $ 1.54     1.57     3.50     3.60
                                            =======  =======  =======  =======
     CONSOLIDATED
STATEMENT OF CASH FLOWS
    (in thousands)
                                                                   Quarter ended
                                                                        June  30
                                                          1997         1996
 Operating activities
   Net cash provided                                     $11,698       21,371

 Investing activities Investments called or matured:
   Fixed maturities available for sale                    60,592       94,660
   Fixed maturities held to maturity                      53,714       45,252
   Equity securities available for sale                   12,738        2,501
   Mortgage loans                                         26,148       19,525
   Other                                                   1,298          930
 Investments sold:
   Fixed maturities available for sale                   101,935       53,628
   Real estate joint ventures                                  0       12,325
   Other                                                   2,608        2,237
 Investments made:
   Fixed maturities available for sale                  (202,342)    (270,169)
   Equity securities available for sale                  (19,526)      (6,297)
   Mortgage loans                                        (29,386)     (19,705)
   Real estate joint ventures                            (14,521)      (1,221)
   Decrease (increase) in short-term investments, net     (5,493)      29,967
   Other                                                  (6,815)      (1,340)
 Other, net                                               (1,798)       1,289
   Net cash used                                         (20,848)     (36,418)

 Financing activities
 Policyowner contract deposits                            92,765       87,176
 Withdrawals of policyowner
   contract deposits                                     (79,079)     (71,447)
 Dividends paid to stockholders                           (5,445)      (5,194)
 Other, net                                                  126          403
   Net cash provided                                       8,367       10,938

 Decrease in cash                                           (783)      (4,109)
 Cash at beginning of year                                 4,577        9,612
   Cash at end of period                                  $3,794        5,503



Message from the President

Earnings  continued  to  trail  last  year's  record  performance  as  mortality
experience  dampened  year-to-year  comparisons.  Operating earnings declined 14
percent for the six months to $3.05 a share.  For the second quarter,  operating
earnings decreased 15 percent.  Net income,  which includes realized  investment
gains and  losses,  declined  3 percent in the first half of the year to $3.50 a
share. Second quarter's net income declined 2 percent to $1.54 a share.

Mortality  experience,  which  fluctuates from  period-to-period  by its nature,
declined at all three of our operating  companies in the first half of the year,
thus having a significant  negative impact on the first half's earnings results.
However,  its impact was partially offset by a reduced effective income tax rate
due to the Company's  investment in real estate  projects  producing  low-income
housing tax credits.

Insurance  sales,  in terms of new  annualized  premiums,  rose 7 percent in the
second  quarter,   reversing  the  1  percent  decline  in  the  first  quarter.
Substantial new premiums have been generated by newly recruited  agents thus far
in 1997,  attesting  to our success in  recruiting  seasoned  agencies of a size
sufficient  to  immediately  impact  insurance  sales.  In  line  with  industry
experience,  much of the growth in sales has come from our  recently  introduced
variable universal life and variable annuity products. Insurance revenues in the
attached  earnings  statement rose 9 percent in the second quarter and 4 percent
for the six months.  Contract charges arising from interest  sensitive  products
rose 6 percent for the quarter  and 5 percent for the six months.  Accident  and
health premiums increased 30 percent in the second quarter and 22 percent in the
first half principally due to the group dental line. Life premiums, arising from
the traditional individual and group lines, rose 4 percent in the second quarter
but  remain  down 2 percent  year-to-date.  The  Company  has $22.3  billion  of
insurance in force, a slight improvement from last year end.

Investment  income  declined  1 percent  in the  quarter  and for the six months
reflecting  slightly lower portfolio yields and reduced  investment asset growth
due to the  shifting  mix of  business  towards  variable  and  group  products.
Investment  gains rose $1.9  million in the quarter and $3.8 million for the six
months largely due to calls on our securities portfolio.

In a departure  from our  history of flat to  declining  home  office  operating
expenses,  these  expenses  rose 6 percent  thus far in 1997.  This  increase is
focused in the group and individual  marketing  areas in support of an effort to
increase revenues.

Stockholder  equity  per share,  or book  value,  stands at $77.42 a share,  a 7
percent annualized growth rate since last year end.

The Board of Directors approved a quarterly  dividend of $.44 a share.  Trailing
twelve-month  dividends equal $1.72 a share. This quarterly  dividend is payable
August 25 to stockholders of record on August 11.


                                         /s/W. E. Bixy
                                         W. E. Bixby