UNITED STATESSECURITIES AND EXCHANGE
			COMMISSIONWASHINGTON,
			DC   20549FORM 10-QQUARTERLY REPORTPursuant to Section 13 or
			15(d) of the Securities Exchange Act of 1934For the Quarterly Period Ended
			September 30, 2007Commission File Number: 0-1999KENTUCKY INVESTORS, INC.(Exact Name of Registrant as
			Specified in Charter)KENTUCKY(State of Other Jurisdiction
			of Incorporation or Organization)61-6030333(IRS Employer Identification
			No.)200 Capital Avenue, P. O. Box
			717Frankfort,
			Kentucky   40602(Address of Principal
			Executive Offices)Registrant's Telephone Number
			- (502) 223-2361Securities registered pursuant
			to Section 13(g) of the Act:Common Capital Stock par value
			$1.00 per share(Title of Class)Number of outstanding shares
			as of November 13, 2007 -- 1,113,018.72Indicate by check mark whether
			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 (or for such shorter period that the
			registrant was required to file such reports), and (2) has been
			subject to such filing requirements for the past 90 days. Yes X NoIndicate by check mark whether
			the registrant is a large accelerated filer, an accelerated filer,
			or a non-accelerated filer. See definition of "accelerated filer and
			large accelerated filer" in Rule 12b-2 of the Exchange Act. Large
			accelerated filer Accelerated filer
			Non-accelerated filer XIndicate
			by check mark whether the registrant is a shell company (as defined
			in Rule 12b-2 of the Exchange Act). Yes  No X    CONTENTS  PART I --
	FINANCIAL INFORMATION PageITEM 1.
				Condensed Consolidated Financial Statements
				3ITEM 2.
				Management's Discussion and Analysis of
				Financial Condition and Results of Operations
				13ITEM 3.
				Quantitative and Qualitative Disclosures
				about Market Risk
				20ITEM 4.
				Controls and Procedures
				20
  PART II -- OTHER INFORMATION ITEM 1.
				Legal Proceedings
				21ITEM1A.
				Risk Factors
				21ITEM 2.
				Unregistered Sales of Equity Securities and
				Use of Proceeds
				21ITEM 3.
				Defaults Upon Senior Securities
				21ITEM 4.
				Submission of Matters to a Vote of Security
				Holders
				21ITEM 5.
				Other Information
				21ITEM 6.
				Exhibits
				21SIGNATURES
				
				22EXHIBIT 31.1
				
				23EXHIBIT 31.2
				
				25EXHIBIT 32
				
				27
    PART I -- FINANCIAL INFORMATION  ITEM 1. Condensed Consolidated
	Financial Statements   KENTUCKY
	INVESTORS, INC.  Condensed
	Consolidated Balance Sheets (Unaudited)  September 30, 2007
				December 31, 2006AssetsInvestmentsSecurities available for sale, at fair
				value:Fixed maturities (amortized cost:$283,427,645 and $281,277,592)
				$284,475,249
				$284,005,322Equity securities (cost:$3,167,520 and $3,141,053)
				3,922,480
				3,790,179Mortgage loans on real estate
				25,249,470
				24,629,380Policy loans
				6,986,238
				7,283,917Other long term investments
				917,858
				1,438,921Short term investments
				365,000
				390,000Total investments
				321,916,295
				321,537,719Cash and cash equivalents
				1,356,306
				1,776,491Accrued investment income
				3,625,547
				4,564,086Due premiums
				3,947,960
				3,854,233Deferred acquisition costs
				21,045,009
				21,494,408Present value of future profits
				139,281
				207,969Leased property under capital leases
				417,210
				350,093Property and equipment, net
				1,706,104
				1,666,402Collateral on securities loaned
				14,476,577
				-Cash value of company-owned life
				insurance
				6,602,144
				6,117,814Other assets
				488,621
				297,866Amounts recoverable from reinsurers
				52,131,112
				53,415,921Total assets
				$427,852,166
				$415,283,002
    September 30, 2007
				December 31, 2006Liabilities and stockholders' equityLiabilitiesPolicy liabilitiesBenefit reserves
				$340,914,322
				$341,173,043Unearned premium reserves
				13,269,809
				13,525,803Policy claims
				1,568,308
				1,567,922Liability for deposit-type contracts
				2,654,960
				2,652,003Reserves for dividends andendowments and other
				566,142
				601,815Total policy liabilities
				358,973,541
				359,520,586Deferred federal income tax liability
				3,540,213
				3,784,625Obligations under capital leases
				412,330
				349,166Notes payable
				4,587,217
				5,725,751Obligations to return collateral undersecurities loan agreement
				14,476,577
				-Accrued pension liability
				2,526,820
				2,847,193Other liabilities
				2,425,571
				1,885,288Total liabilities
				$386,942,269
				$374,112,609Stockholders'
				equityCommon stock (shares issued:1,113,018 and 1,113,104)
				$    1,113,018
				$    1,113,104Paid-in surplus
				8,611,518
				8,603,902Accumulated other comprehensiveloss
				(1,055,953)
				(114,520)Retained earnings
				32,241,314
				31,567,907Total stockholders' equity
				$  40,909,897
				$  41,170,393Total liabilities and stockholders'equity
				$427,852,166
				$415,283,002See accompanying notes.
    KENTUCKY
	INVESTORS, INC.  Condensed
	Consolidated Income Statements (Unaudited)  Three Months Ended September 302007
				2006RevenuePremiums and other considerations
				$11,238,490
				$12,396,658Premiums ceded
				(3,570,741)
				(3,928,452)Net premiums earned
				7,667,749
				8,468,206Investment income, net of expenses
				4,527,405
				4,475,159Realized gain (loss) on investments, net
				(1,683)
				80,004Other income
				115,311
				319,618Total revenue
				12,308,782
				13,342,987Benefits and expensesDeath and other benefits
				7,808,407
				7,041,049Guaranteed annual endowments
				128,048
				133,953Dividends to policyholders
				144,396
				134,192Increase in benefit reservesand unearned premiums
				749,205
				2,103,977Acquisition costs deferred
				(1,113,511)
				(1,238,268)Amortization of deferred acquisition
				costs
				1,310,886
				1,603,515Commissions
				499,735
				514,581Other expenses
				2,242,005
				2,333,233Total benefits and expenses
				11,769,171
				12,626,232Income before federal income taxes
				539,611
				716,755Provision for federal income taxes:Current
				51,481
				80,877Deferred
				44,094
				48,712Total provision for federal income
				taxes
				95,575
				129,589Net income
				$     444,036
				$     587,166Basic and diluted earnings per share
				$           0.40
				$           0.53Dividends per share
				$                -
				$                 -See accompanying notes.
    KENTUCKY
	INVESTORS, INC.  Condensed
	Consolidated Income Statements (Unaudited)  Nine Months Ended September 302007
				2006RevenuePremiums and other considerations
				$33,925,237
				$36,412,055Premiums ceded
				(9,919,363)
				(10,513,135)Net premiums earned
				24,005,874
				25,898,920Investment income, net of expenses
				13,517,157
				13,502,933Realized gain (loss) on investments, net
				(1,082)
				21,360Other income
				754,973
				836,322Total revenue
				38,276,922
				40,259,535Benefits and expensesDeath and other benefits
				24,559,841
				23,826,202Guaranteed annual endowments
				438,348
				459,363Dividends to policyholders
				428,164
				427,446Increase in benefit reservesand unearned premiums
				2,121,568
				4,785,815Acquisition costs deferred
				(3,578,597)
				(3,759,754)Amortization of deferred acquisition
				costs
				4,154,096
				4,584,609Commissions
				1,535,635
				1,642,226Other expenses
				7,272,475
				7,199,202Total benefits and expenses
				36,931,530
				39,165,109Income from operations before provisionfor federal income taxes
				1,345,392
				1,094,426Provision (benefit) for federal income
				taxes:Current
				104,593
				228,943Deferred
				133,701
				(31,071)Total provision for federal income taxes
				238,294
				197,872Net income
				$   1,107,098
				$     896,554Basic and diluted earnings per share
				$            0.99
				$           0.81Dividends per share
				$            0.38
				$           0.38See accompanying notes.
    KENTUCKY
	INVESTORS, INC.  Condensed
	Consolidated Statements of Stockholders' Equity (Unaudited)  AccumulatedOther
			
			
			
			TotalCommon
			
			Paid-in
			
			Comprehensive
			
			Retained
			
			Stockholders'Stock
			
			Surplus
			
			Income (Loss)
			
			Earnings
			
			EquityBALANCE, JANUARY 1,
			2006
			
			$  1,104,773
			
			$    8,578,978
			
			$         3,954,841
			
			$  30,624,112
			
			$      44,262,704Comprehensive income
			(loss):Net income
			
			-
			
			-
			
			-
			
			896,554
			
			896,554Change in net
			unrealized appreciation onavailable-for-sale
			securities, net of tax
			
			-
			
			-
			
			(2,334,313)
			
			-
			
			(2,334,313)Change in fair value of
			hedging instrument
			
			-
			
			-
			
			3,240
			
			-
			
			3,240Total comprehensive
			loss
			
			
			
			
			
			
			
			
			
			(1,434,519)Cash dividends paid
			($0.38 per share)
			
			-
			
			-
			
			-
			
			(455,604)
			
			(455,604)Issuances  of common
			stock, net
			
			4,949
			
			18,327
			
			-
			
			97,025
			
			120,301BALANCE, SEPTEMBER 30,
			2006
			
			$  1,109,722
			
			$    8,597,305
			
			$        1,623,768
			
			$  31,162,087
			
			$     42,492,882BALANCE, JANUARY 1,
			2007
			
			$  1,113,104
			
			$    8,603,902
			
			$         (114,520)
			
			$  31,567,907
			
			$      41,170,393Comprehensive income
			(loss):Net income
			
			-
			
			-
			
			-
			
			1,107,098
			
			1,107,098Change in net
			unrealized appreciation onavailable-for-sale
			securities, net of tax
			
			-
			
			-
			
			(1,024,442)
			
			-
			
			(1,024,442)Amortization of
			unrecognized net actuarial losson pension plan, net
			of tax
			
			-
			
			-
			
			88,609
			
			-
			
			88,609Change in fair value of
			hedging instrument
			
			-
			
			-
			
			(5,600)
			
			-
			
			(5,600)Total comprehensive
			income
			
			
			
			
			
			
			
			
			
			165,665Cash dividends paid
			($0.38 per share)
			
			-
			
			-
			
			-
			
			(423,062)
			
			(423,062)Issuances  (redemptions)
			of common stock, net
			
			(86)
			
			7,616
			
			-
			
			(10,629)
			
			(3,099)BALANCE, SEPTEMBER 30,
			2007
			
			$  1,113,018
			
			$    8,611,518
			
			$        (1,055,953)
			
			$  32,241,314
			
			$     40,909,897   See accompanying notes.    KENTUCKY
	INVESTORS, INC.  Condensed
	Consolidated Statements of Cash Flows (Unaudited)  Nine Months Ended September 302007
			2006Net cash provided by operating activities
			$  4,189,792
			$   7,547,236Investing activitiesSecurities available-for-sale:Purchases
			(13,554,554)
			(40,996,594)Sales and maturities
			11,086,819
			36,836,444Other investments:Cost of acquisition
			(2,961,586)
			(1,723,886)Sales and maturities
			3,185,238
			3,093,296Net additions to property and equipment
			(406,714)
			(309,054)Net cash used in investing activities
			(2,650,797)
			(3,099,794)Financing activitiesReceipts from universal life policiescredited to policyholder accountbalances
			7,302,044
			8,026,266Return of policyholder account balanceson universal life policies
			(7,696,529)
			(7,762,511)Payments on notes payable
			(3,987,981)
			(5,985,765)Proceeds from notes payable
			2,849,447
			4,829,102Issuances (redemptions) ofcommon stock, net
			(3,099)
			120,301Dividends paid
			(423,062)
			(455,604)Net cash used in financing activities
			(1,959,180)
			(1,228,211)Increase (decrease) in cash andcash equivalents
			(420,185)
			3,219,231Cash and cash equivalents at beginning of period
			1,776,491
			1,994,032Cash and cash equivalents at end of period
			$  1,356,306
			$   5,213,263See
			accompanying notes.    KENTUCKY INVESTORS, INC.  NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS September 30, 2007 (Unaudited)  NOTE A - Nature of Operations:Kentucky Investors, Inc. is the
	holding company of Investors Heritage Life Insurance Company; Investors
	Heritage Printing, Inc., a printing company; Investors Heritage Financial
	Services Group, Inc., an insurance marketing company; and is the sole member
	of At Need Funding, LLC, a limited liability company that provides advance
	funding of funerals in exchange for the irrevocable assignment of life
	insurance policies from other nonaffiliated companies. These entities are
	collectively hereinafter referred to as the "Company". Approximately 99% of
	Kentucky Investors' consolidated revenue is generated by Investors Heritage
	Life.  Our operations involve the sale and administration of various insurance and
	annuity products, including, but not limited to, participating and
	non-participating whole life, limited pay life, universal life, annuity
	contracts, credit life, credit accident and health and group insurance
	policies. The principal markets for the Company's products are in the
	commonwealths of Kentucky and Virginia, and the states of North Carolina,
	South Carolina, Ohio, Indiana, Florida, Tennessee, Georgia, and Michigan.  NOTE B - Basis of Presentation:The accompanying unaudited condensed
	consolidated financial statements have been prepared in accordance with U.S.
	generally accepted accounting principles for interim financial information
	and the instructions to Form 10-Q and Article 10 of Regulation S-X.
	Accordingly, they do not include all of the information and footnotes
	required by U.S. generally accepted accounting principles for complete
	financial statements. In the opinion of management, all adjustments
	(consisting of normal recurring accruals) considered necessary for a fair
	presentation have been included. Operating results for the nine months ended
	September 30, 2007 are not necessarily indicative of the results that may be
	expected for the year ending December 31, 2007. For further information,
	refer to the consolidated financial statements and footnotes thereto for the
	year ended December 31, 2006, as included in our Annual Report on Form 10-K.  The preparation of financial statements in conformity with U.S. generally
	accepted accounting principles requires management to make estimates and
	assumptions that affect the amounts reported in the financial statements and
	accompanying notes. Actual results could differ from those estimates.  Certain reclassifications have been made to the amounts previously reported
	for the prior periods shown herein to conform to the current period
	presentation.  NOTE C - Earnings per Share and Stock-Based Compensation:Earnings
	per share of common stock were computed based on the weighted average number
	of common shares outstanding during each period. The weighted average number
	of shares outstanding for the three months ended September 30, 2007 and 2006
	were 1,113,066 and 1,108,458, respectively. The weighted average number of
	shares outstanding for the nine months ended September 30, 2007 and 2006
	were 1,113,219 and 1,106,808, respectively.  We account for our stock-based incentive program under Statement of
	Financial Accounting Standard ("SFAS") No. 123(R), "Share-Based Payment,"
	which requires all share-based payments to employees to be recognized as
	compensation expense in the consolidated income statement. We adopted the
	provisions of SFAS No. 123(R) using the modified prospective method in which
	compensation expense is recognized based on the requirements of SFAS No.
	123, "Accounting for Stock-Based Compensation," for all awards
	granted to employees prior to January 1, 2006. Under this method, our
	stock-based compensation is reported in the balance sheets as a liability
	based on the intrinsic value of the compensation, and compensation expense
	is measured as the change in intrinsic value.  The Company's only outstanding stock options and stock appreciation rights
	were issued in 1999. Under our stock option and stock appreciation rights
	plan, there were 61,125 outstanding options, having an exercise price of
	$23.00 per share, as of September 30, 2007 and 2006. We recognized an
	increase in compensation expense relative to the outstanding options of
	$143,644 and $45,844, respectively, for the three and nine month periods
	ended September 30, 2007. We recognized an increase of $51,956 and $94,744,
	respectively, in compensation expense associated with such options for the
	three month and nine month periods ended September 30, 2006. These changes
	in compensation expense were based on changes in the market value of the
	Company's stock compared to the exercise price of the options as of those
	dates.  NOTE D - Segment Data:We operate in four segments as shown in the
	following table. All segments include both individual and group insurance.
	Identifiable revenues and expenses are assigned directly to the applicable
	segment. Net investment income is generally allocated to the insurance and
	the corporate segments in proportion to policy liabilities and stockholders'
	equity, respectively. Corporate and Other segment results include results
	for the parent company, Investors Heritage Printing, Inc., At Need Funding
	LLC and a portion of Investors Heritage Financial Services Group, Inc.,
	after elimination of intercompany amounts.  During the current quarter, we determined that certain service fee income of
	Investors Heritage Financial Services Group that is derived from external
	parties relative to credit administrative services being provided should be
	included within the Credit Insurance Products and Administrative Services
	segment.  Historically, all Investors Heritage Financial Services Group
	revenue and income has been included in the Corporate and Other segment. 
	Accordingly, the prior period segment data has been reclassified for
	comparative purposes with the current period segment presentation.   Three
			Months EndedSeptember 30, 2007
			September 30, 2006Revenue:Preneed and Burial Products
			$   9,272,678
			$   9,553,288Traditional and Universal Life Products
			2,746,644
			3,202,347Credit Insurance Products andAdministrative Services
			117,634
			129,872Corporate and Other
			171,826
			457,480$
			12,308,782
			$  13,342,987Income (loss) from operations before federalincome taxes:Preneed and Burial Products
			$      321,938
			$     213,280Traditional and Universal Life Products
			224,720
			150,184Credit Insurance Products andAdministrative Services
			95,684
			95,673Corporate and Other
			(102,731)
			257,618$       539,611
			$      716,755  Nine
			Months EndedSeptember 30, 2007
			September 30, 2006Revenue:Preneed and Burial Products
			$ 28,182,897
			$ 29,967,966Traditional and Universal Life Products
			8,920,560
			8,961,768Credit Insurance Products andAdministrative Services
			306,134
			359,547Corporate and Other
			867,331
			970,254$ 38,276,922
			$ 40,259,535Income from operations before federalincome taxes:Preneed and Burial Products
			$         298,540
			$       138,626Traditional and Universal Life Products
			512,271
			363,942Credit Insurance Products andAdministrative Services
			201,380
			272,320Corporate and Other
			333,201
			319,538$      1,345,392
			$   1,094,426  NOTE E - Federal Income Taxes:The provision (benefit) for federal
	income taxes is based on the estimated effective annual tax rate. Deferred
	taxes reflect the net tax effects of temporary differences between the
	carrying amounts of assets and liabilities for financial reporting purposes
	and the amounts used for income tax purposes. Income before federal income
	taxes differs from taxable income principally due to the dividends-received
	deduction, the 404(k) dividend deduction and the small life insurance
	company tax deduction.  The Financial Accounting Standards
	Board ("FASB") issued Interpretation No. 48, "Accounting for Uncertainty
	in Income Taxes, an interpretation of FASB Statement No. 109" ("FIN
	48"), in June 2006. FIN 48 clarifies the accounting for uncertainty in
	income taxes by defining criteria that a tax position on an individual
	matter must meet before that position is recognized in the financial
	statements.  Additionally, FIN 48 provides guidance on measurement,
	derecognition, classification, interest and penalties, interim period
	accounting, disclosures and transition. We adopted the provisions of FIN 48
	on January 1, 2007. The adoption of FIN 48 did not have a material impact on
	our financial condition or results of operations.  We file U.S. federal income
	tax returns and income tax returns in various state jurisdictions. Our 2004,
	2005 and 2006 U.S. federal tax years remain subject to income tax
	examination by tax authorities.  We have no known uncertain tax benefits
	within our provision for income taxes. In addition, we do not believe the
	Company will be subject to any penalties or interest relative to any open
	tax years and, therefore, have not accrued any such amounts.  However, it is
	our policy to classify any interest and penalties (if applicable) as income
	tax expense in the financial statements.  NOTE F - Comprehensive Income (Loss):The components of comprehensive
	income (loss), net of related federal income taxes, are as follows:  Three
			Months EndedSeptember 30, 2007
			September 30, 2006Net income
			$       444,036
			$       587,166Change in
			fair value of hedging instrument
			(10,921)
			(14,996)Amortization
			of unrecognized net actuarial losson pension
			plan, net of tax
			29,537
			-Net
			unrealized appreciation/depreciation on available-for-salesecurities, net of federal income taxes
			2,209,767
			4,247,040Comprehensive income
			$    2,672,419
			$
			    4,819,210Nine
			Months EndedSeptember 30, 2007
			September 30, 2006Net income
			$    1,107,098
			$
			      896,554Change in
			fair value of hedging instrument
			(5,600)
			3,240Amortization
			of unrecognized net actuarial losson pension
			plan, net of tax
			88,609
			-Net
			unrealized appreciation/depreciation on available-for-salesecurities, net of federal income taxes
			(1,024,442)
			(2,334,313)Comprehensive income (loss)
			$       165,665
			$  
			(1,434,519)  NOTE G - Employee
	Benefit Plans:We sponsor a noncontributory defined benefit retirement
	plan which covers substantially all employees. Benefits are based on years
	of service and the highest consecutive 60 months average earnings within the
	last 120 months of credited service. Benefits are funded based on
	actuarially-determined amounts.  The following table
	provides the components of our net periodic benefit cost:  Three Months EndedSeptember 30, 2007
			September 30, 2006Service cost
			$   86,075
			$   77,688Interest cost
			183,238
			173,947Expected return on plan assets
			(212,874)
			(182,198)Amortization of net actuarial loss
			44,752
			54,200Net periodic benefit cost
			$ 101,191
			$ 123,637  Nine Months EndedSeptember 30, 2007
			September 30, 2006Service cost
			$ 258,225
			$ 233,064Interest cost
			549,714
			521,841Expected return on plan assets
			(638,622)
			(546,594)Amortization of net actuarial loss
			134,256
			162,600Net periodic benefit cost
			$ 303,573
			$ 370,911   We previously disclosed in
	our financial statements for the year ended December 31, 2006 that we
	expected to contribute $652,920 to our pension plan in 2007. As of September
	30, 2007, $489,690 had been contributed. We presently anticipate
	contributing an additional $163,230 to fund our pension plan in 2007.  NOTE H - Investments:We participate in a securities lending program, primarily for investment
	yield enhancement purposes, with third parties, mostly large brokerage
	firms. Securities loaned are treated as financing arrangements and the
	unrestricted collateral received is recorded as an asset, with an offsetting
	liability recorded for our obligation to return the collateral, both
	reported at fair value. We obtain collateral in an amount equal to 102% of
	the fair value of domestic securities loaned, monitor the market value of
	securities loaned on a daily basis and obtain additional collateral as
	necessary. At September 30, 2007, fixed income securities with a carrying
	value of $14,082,855 were on loan under this agreement, with associated
	collateral held of $14,476,577. At December 31, 2006, there were no
	securities on loan under this agreement. Income earned relative to this
	program was $3,761 and $13,078, respectively, for the three month and nine
	month periods ended September 30, 2007. Income earned relative to this
	program was $5,519 and $18,618, respectively, for the three month and nine
	month periods ended September 30, 2006.  ITEM 2. Management's Discussion and
	Analysis of Financial Condition and Results of Operations  General  Kentucky Investors is
	incorporated under the laws of the Commonwealth of Kentucky and wholly owns
	Investors Heritage Life Insurance Company, a life insurance company also
	incorporated under the laws of the Commonwealth of Kentucky. Kentucky
	Investors also wholly owns Investors Heritage Financial Services Group,
	Inc., a Kentucky insurance marketing company, Investors Heritage Printing,
	Inc., a Kentucky printing company that provides printing to Investors
	Heritage Life and other unaffiliated parties, and is the sole member of At
	Need Funding, LLC, a Kentucky limited liability company that provides
	advance funding of funerals in exchange for the irrevocable assignment of
	life insurance policies from other nonaffiliated companies.  Investors Heritage Life offers a full line of life insurance products
	including, but not limited to, whole life, term life, single premium life,
	multi-pay life and annuities. Investors Heritage Life's primary lines of
	business are insurance policies and annuities utilized to fund preneed
	funeral contracts, credit life and credit disability insurance, and term
	life and reducing term life sold through financial institutions.  The Legacy Protector and
	Legacy Preferred life insurance and annuity products are marketed
	exclusively in conjunction with pre-arranged funerals. These products allow
	for competitive commissions and death benefit growth to provide adequate
	proceeds to cover funeral expenses while allowing individuals to purchase
	affordable benefits that meet their personal needs. Underwritten and
	guaranteed issue options are available.  The Heritage Final Expense
	product is sold in the final expense markets. It is reinsured on an 80%
	quota share basis. This reinsurance arrangement has helped to reduce first
	year statutory surplus strain associated with new sales, as well as provide
	a stable profit stream for the future.  Investors Heritage Life
	also provides term insurance products, both on a decreasing and a level
	basis. The Term to 95 product provides level coverage. Our decreasing term
	policy is primarily sold through financial institutions.  While we continue to expand
	the operations of Investors Heritage Financial, Investors Heritage Printing
	and At Need Funding, approximately 1% of our consolidated revenues were
	generated by those subsidiaries. Approximately 10% of Investors Heritage
	Financial's revenues for the nine month period ended September 30, 2007 were
	derived from the sale of Investors Heritage Life's credit insurance
	products. During the first nine months of 2007, Kentucky Investors received
	dividends from Investors Heritage Financial totaling $316,000 and received
	distributions from At Need Funding of $40,000. We anticipate further
	dividend payments from Investors Heritage Financial and distributions from
	At Need Funding during the remainder of 2007.  Our primary uses of cash are ongoing operating expenses, debt service and
	dividend payments, and our principal sources of cash are the dividends paid
	to us by Investors Heritage Life and Investors Heritage Financial. Investors
	Heritage Life's principal sources of cash are proceeds received from the
	sale of life insurance policies, administrative service fees and investment
	income, including realized gains (losses), less interest credited and
	benefits to policyholders and expenses.  Critical Accounting Policies and Estimates  The discussion and analysis
	of our financial condition and results of operations is based on our
	consolidated financial statements, which have been prepared in accordance
	with U.S. generally accepted accounting principles. Preparation of these
	financial statements requires us to make estimates and judgments that affect
	the reported amounts of assets, liabilities, revenues and expenses. On a
	continuing basis, we evaluate our estimates, including those related to
	investments, deferred acquisition costs, present value of future profits,
	policy liabilities, income taxes, accrued pension liabilities, regulatory
	requirements, contingencies and litigation. We base such estimates on
	historical experience and other assumptions believed to be reasonable under
	the circumstances, the results of which form the basis for making judgments
	about the carrying values of assets and liabilities that are not readily
	apparent from other sources. Actual results may differ from these estimates
	under different assumptions or conditions. We believe the following
	accounting policies, judgments and estimates are the most critical to the
	preparation of our consolidated financial statements.  Investments in Fixed Maturities, Equity
	Securities and Mortgage Loans  We hold fixed maturities
	and equity interests in a variety of companies. Additionally, we originate,
	underwrite and manage mortgage loans. We continuously evaluate all of our
	investments based on current economic conditions, credit loss experience and
	other developments. We evaluate the difference between the cost/amortized
	cost and estimated fair value of our investments to determine whether any
	decline in value is other-than-temporary in nature. This determination
	involves some degree of uncertainty. If a decline in the fair value of a
	security is determined to be temporary, the decline is recorded as an
	unrealized loss in stockholders' equity. If a decline in a security's fair
	value is considered to be other-than-temporary, the security is written down
	to the estimated fair value with a corresponding realized loss recognized in
	the consolidated income statement.  The assessment of whether a
	decline in fair value is considered temporary or other-than-temporary
	includes our judgment as to the financial position and future prospects of
	the entity issuing the security. It is not possible to accurately predict
	when it may be determined that a specific security will become impaired.
	Future adverse changes in market conditions, poor operating results of
	underlying investments and defaults on mortgage loan payments could result
	in losses or an inability to recover the current carrying value of the
	investments, thereby possibly requiring an impairment charge in the future.
	Likewise, a change in our ability or intent to hold temporarily impaired
	securities until maturity or recovery in value could result in a future
	impairment charge.  Deferred Acquisition Costs  At September 30, 2007, the
	balance of our deferred acquisition costs was approximately $21,045,000
	compared to $21,494,000 at December 31, 2006. The recovery of these costs is
	dependent on the future profitability of the related business. Each
	reporting period, we evaluate the recoverability of the unamortized balance
	of the deferred acquisition costs. We consider estimated future gross
	profits or future premiums, expected mortality or morbidity, interest earned
	and credited rates, persistency and expenses in determining whether the
	balance is recoverable. If we determine a portion of the unamortized balance
	is not recoverable, it is immediately charged to amortization expense. The
	assumptions we use to amortize and evaluate the recoverability of the
	deferred acquisition costs involve significant judgment. A revision to these
	assumptions may impact future financial results.  Policy Liabilities  Establishing liabilities
	for our long-duration insurance contracts requires various assumptions,
	including policyholder persistency, mortality rates, investment yields,
	discretionary benefit increases, new business pricing, and operating expense
	levels. We evaluate historical experience for these factors when assessing
	the need for changing current assumptions. However, since many of these
	factors are interdependent and subject to short-term volatility during the
	long-duration contract period, substantial estimates and judgments are
	required. Actual experience may emerge differently from that assumed. Any
	such difference would be recognized in the current period's consolidated
	income statement. Income Taxes  We evaluate our deferred
	income tax assets, which partially offset our deferred tax liabilities, for
	any necessary valuation allowances. In doing so, we consider our ability and
	potential for recovering income taxes associated with such assets, which
	involve significant judgment. Revisions to the assumptions associated with
	any necessary valuation allowances would be recognized in the financial
	statements in the period in which such revisions are made.  Accrued Pension Liabilities  We maintain a defined
	benefit retirement plan on behalf of our employees. Measurement of the
	future benefit obligations associated with this plan involves significant
	judgment, particularly in regard to the expected long-term rate of return on
	plan assets, rate of compensation increases and the current discount rate
	used to calculate the present value of future obligations. Changes in these
	assumptions can significantly impact the accrued pension liability required
	to be recorded in the financial statements.   Investments, Liquidity and Capital
	Resources  Investments  Investors Heritage Life has maintained a sound, conservative investment
	strategy. At September 30, 2007, 88.4% of invested assets consisted of fixed
	income public bonds compared to 88.3% at December 31, 2006. Fixed income
	assets are managed by Conning Asset Management Company, an independent
	portfolio manager. At September 30, 2007 and December 31, 2006, Investors
	Heritage Life's fixed income investments were 99.7% and 100% investment
	grade, respectively, as rated by Standard & Poor's. None of Investors
	Heritage Life's fixed income assets are in default and there has been no
	material change in the distribution of its fixed income portfolio.  We recognized no
	other-than-temporary impairment losses during the nine months ended
	September 30, 2007 or the corresponding period in 2006. We believe that we
	will recover the cost basis in the securities held with unrealized losses as
	we have both the intent and ability to hold the securities until they mature
	or recover in value.  We participate in a
	securities lending program, primarily for investment yield enhancement
	purposes, with third parties, mostly large brokerage firms. Securities
	loaned are treated as financing arrangements and the unrestricted collateral
	received is recorded as an asset, with an offsetting liability recorded for
	our obligation to return the collateral.  Additionally, Investors Heritage Life engages in commercial and residential
	mortgage lending, with approximately 99.8% of these investments being in
	commercial properties. All mortgage loans are originated in-house and all
	loans are secured by first mortgages on the real estate. At September 30,
	2007, 7.8% of invested assets consisted of mortgage loans compared to 7.7%
	at December 31, 2006. We anticipate funding several new mortgage loan
	investments during the remainder of 2007 to maintain a similar to slightly
	higher percentage of mortgage loans to total invested assets. As of
	September 30, 2007, Investors Heritage Life had no non-performing mortgage
	loans, which would include loans past due 90 days or more, loans in process
	of foreclosure, restructured loans and real estate acquired through
	foreclosure.  Liquidity and Capital
	Resources  Premiums, which include
	mortality and expense charges, and investment income are Investors Heritage
	Life's primary sources of cash flow used to meet short-term and long-term
	cash requirements.  Investors Heritage Life's
	short-term obligations consist primarily of policyholder benefits and
	operating expenses. Investors Heritage Life has historically been able to
	meet these obligations out of operating cash, premiums and investment
	income.  Investors Heritage Life's
	principal long-term obligations are fixed contractual obligations incurred
	in the sale of its life insurance products. The premiums charged for these
	products are based on conservative and actuarially sound assumptions as to
	mortality, persistency and interest. We believe these assumptions will
	produce revenues sufficient to meet our future contractual benefit
	obligations and operating expenses, and provide an adequate profit margin.  Investors Heritage Life's
	conservative approach in the product development area and the strength and
	stability of its fixed income and mortgage loan portfolios provide adequate
	liquidity both in the short-term and the long-term.  Kentucky Investors principal sources of cash flow are rental income and
	dividends from its subsidiaries. Kentucky Investors principal long-term
	obligations are payments on long-term debt.  We assess our compliance
	with prescribed debt covenant requirements as outlined in the terms of each
	debt agreement at least annually, if not otherwise required in the debt
	agreement.  Management has assessed our position and as of September 30,
	2007, we are in compliance with all debt covenant requirements.  We are not aware of any
	commitments or unusual events that could materially affect capital
	resources. We have the option to prepay certain notes payable at our
	discretion prior to their maturity dates.  We will continue to explore various opportunities including mergers and
	acquisitions and purchasing blocks of business from other companies, which
	may dictate a need for either long-term or short-term debt.  There are no
	restrictions as to use of funds except the restriction on Investors Heritage
	Life as to the payment of cash dividends to Kentucky Investors.  Results of Operations  Overview  Premiums earned (net of
	reinsurance) were $7,667,749 for the third quarter of 2007 (a decrease of
	9.5% compared to the third quarter of 2006) and $24,005,874 for the first
	nine months of 2007 (a decrease of 7.3% compared to the same period in
	2006). The decrease was primarily due to lower sales in the preneed and
	burial segment. Net investment income was $4,527,405 for the third quarter
	of 2007 (an increase of 1.2% compared to the third quarter of 2006) and
	$13,517,157 for the first nine months of 2007 (an increase of 0.1% compared
	to the same period in 2006). Total revenue was $12,308,782 for the third
	quarter of 2007 (a decrease of 7.8% compared to the third quarter of 2006)
	and $38,276,922 for the first nine months of 2007 (a decrease of 4.9%
	compared to the same period in 2006). This decrease is primarily due to the
	previously described lower sales in the preneed and burial segment as well
	as the correction of a $185,861 billing error relative to administrative
	fees for one of our reinsurance agreements identified in the 2007 third
	quarter.  Total benefits and expenses were $11,769,171 in the third quarter of 2007 (a
	decrease of 6.8% compared to the third quarter of 2006) and $36,931,530 for
	the first nine months of 2007 (a decrease of 5.7% compared to the same
	period in 2006). The decrease in benefits and expenses is primarily due to
	lower preneed production as well as improved mortality in the preneed and
	traditional and universal life segments in comparison to the same prior year
	period. After providing for federal income taxes, our net income was
	$444,036 with earnings per share of $0.40 for the third quarter of 2007 as
	compared to $587,166 and earnings per share of $0.53 for the third quarter
	of 2006. Our net income was $1,107,098 with earnings per share of $0.99 for
	the first nine months of 2007 as compared to $896,554 and earnings per share
	of $0.81 for the same period in 2006.  A dividend of $0.38 per
	share was paid April 7, 2007, to shareholders of record on March 23, 2007.  Business Segments  We internally evaluate the
	performance of our operations by the following business segments:  Preneed and Burial Products
	include both life and annuity products sold by funeral directors or
	affiliated agents to fund prearranged funerals. Revenues for this segment
	were $9,272,678 for the third quarter of 2007 (a decrease of 2.9% compared
	to the third quarter of 2006) and $28,182,897 for the first nine months of
	2007 (a decrease of 6.0% compared to the same period of 2006). The decrease
	is due primarily to decreased premium production from lower sales of the
	preneed and burial products. Pre-tax income (loss) from operations was
	$321,938 for the third quarter of 2007 compared to $213,280 for the same
	period for 2006 and $298,540 for the first nine months of 2007 compared to
	$138,626 for the same period for 2006. The improvement in pre-tax income was
	primarily driven by improved mortality experience within the segment.  Traditional and Universal Life Products include traditional life and group
	life insurance products, annuities (primarily qualified) and universal life
	products. Revenues for this segment were $2,746,644 for the third quarter of
	2007 (a decrease of 14.2% compared to the third quarter of 2006) and
	$8,920,560 for the first nine months of 2007 (a decrease of 0.5% compared to
	the same period of 2006). Revenues on this segment are primarily derived
	from the sale of term insurance products through banks, for which demand
	fluctuates along with economic conditions. Pre-tax income from operations
	was $224,720 for the third quarter of 2007 compared to $150,184 for the same
	period for 2006 and $512,271 for the first nine months of 2007 compared to
	$363,942 for the same period for 2006. Fluctuations in pre-tax income for
	this segment are primarily due to variations in experienced mortality for
	the applicable periods.  Credit Insurance Products and Administrative Services include the marketing
	and administration of credit life and credit accident and health insurance
	products. All of the related underwriting risk currently produced within
	this segment is being reinsured 100% with highly-rated life companies.
	Accordingly, revenue is generated primarily from servicing and administering
	the credit business for our reinsurers. Because the revenue is fee-based,
	segment performance is in direct relation to new and existing earned premium
	production. Revenues for this segment were $117,634 for the third quarter of
	2007 (a decrease of 9.4% compared to the third quarter of 2006) and $306,134
	for the first nine months of 2007 (a decrease of 14.9% compared to the same
	period of 2006). Pre-tax income from operations was $95,684 for the third
	quarter of 2007 compared to $95,673 for the same period for 2006 and
	$201,380 for the first nine months of 2007 compared to $272,320 for the same
	period for 2006.  These decreases in revenue and pre-tax income are directly
	related to lower premium production within this segment of the business.  Corporate and Other
	consists of corporate accounts measured primarily by stockholders' paid-in
	capital, contributed surplus, earned surplus, property and equipment, and
	other minor business lines which include group annuities and group and
	individual accident and health products. Revenues for this segment were
	$171,826 for the third quarter of 2007 (a decrease of 62.4% compared to the
	third quarter of 2006) and $867,331 for the first nine months of 2007 (a
	decrease of 10.6% compared to the same period of 2006). The decrease in
	revenues for the third quarter of 2007 and the first nine months of 2007 in
	comparison to the respective prior year periods is due primarily to
	decreased funding activity within At Need Funding coupled with a reduction
	in realized gains taken during the period.  Pre-tax income (loss) from
	operations was ($102,731) for the third quarter of 2007 compared to $257,618
	for the same period of 2006 and $333,201 for the first nine months of 2007
	compared to $319,538 for the same period for 2006. The decrease in pre-tax
	income for the third quarter of 2007 in comparison to the same period in
	2006 is primarily due to the aforementioned reduced revenue coupled with
	increased stock option expense recognized relative to the change in the
	underlying value of the Company's stock at September 30, 2007 as compared to
	the value at June 30, 2007.  The increase in pre-tax income for the nine
	month period ended September 30, 2007 in comparison to the prior year is
	primarily due to reduced general expenses in comparison to the prior period.  Federal Income Taxes  The provision (benefit) for
	federal income taxes is based on the estimated effective annual tax rate.
	Deferred taxes reflect the net tax effects of temporary differences between
	the carrying amounts of assets and liabilities for financial reporting
	purposes and the amounts used for income tax purposes. Income before federal
	income taxes differs from taxable income principally due to the
	dividends-received deduction, the 404(k) dividend deduction and the small
	life insurance company tax deduction. The effective tax rate was 17.7% for
	the nine months ended September 30, 2007 compared to 18.1% for the nine
	months ended September 30, 2006.  Off-Balance Sheet Arrangements  We have no off-balance sheet arrangements
	as of September 30, 2007.  Forward Looking Information  We caution readers
	regarding certain forward-looking statements contained in this report and in
	any other statements made by us or on our behalf, whether or not in future
	filings with the Securities and Exchange Commission. Forward-looking
	statements are statements not based on historical information and which
	relate to future operations, strategies, financial results, or other
	developments. Statements using verbs such as "expect", "anticipate",
	"believe" or words of similar import generally involve forward-looking
	statements. Without limiting the foregoing, forward-looking statements
	include statements which represent our beliefs concerning future levels of
	sales and redemptions of Investors Heritage Life's products, investment
	spreads and yields, or our earnings and profitability.  Forward-looking statements
	are necessarily based on estimates and assumptions that are inherently
	subject to significant business, economic and competitive uncertainties and
	contingencies, many of which are beyond our control and many of which are
	subject to change. These uncertainties and contingencies could cause actual
	results to differ materially from those expressed in any forward-looking
	statements made by us or on our behalf. Whether or not actual results differ
	materially from forward-looking statements may depend on numerous
	foreseeable and unforeseeable factors and developments. Some of these may be
	national in scope, such as general economic conditions, changes in tax law
	and changes in interest rates. Some may be related to the insurance industry
	generally, such as pricing competition, regulatory developments, industry
	consolidation and the effects of competition in the insurance business from
	other insurance companies and other financial institutions operating in our
	market area and elsewhere. Others may relate to us specifically, such as
	credit, volatility and other risks associated with our investment portfolio.
	We caution that such factors are not exclusive. We disclaim any obligation
	to update forward-looking information.  ITEM 3. Quantitative and Qualitative
	Disclosures about Market Risk  There have been no
	significant or material changes in our market risks since December 31, 2006.
	Measuring market risk is a key function of our asset/liability management
	process. To test financial risk and investment strategy, we perform an asset
	adequacy analysis each year. Dynamic models of both assets and liabilities
	are created to project financial results under several shifts in the current
	interest rate environment. Results show that our exposure to a relative 10%
	increase (decrease) in the interest rates prevalent at December 31, 2006 is
	a net gain (loss) of less than $500,000. This analysis is performed
	annually.  Items taken into account on
	the asset side include prepayment and liquidity risks, asset diversification
	and quality considerations. On the liability side, interest crediting
	strategies and policyholder and agent behavior (lapses, loans, withdrawals
	and premium flow) are dynamically modeled in relationship to the particular
	interest rate environment tested. Although we are careful to ensure that
	these assumptions are consistent with the best available data,
	interest-sensitive cash flows cannot be forecast with certainty and can
	deviate significantly from the assumptions made.  Because asset and liability
	durations are continually changing as new policyholder contracts are issued
	and as new investments are added to the portfolio, we manage our balance
	sheet on an ongoing basis and its net exposure to changes in interest rates
	may vary over time. Although the asset adequacy analysis is not performed on
	a quarterly basis, we believe that our asset base is sufficient to cover the
	minimal increases or decreases that would be expected to occur during any
	particular year.  ITEM 4. Controls and Procedures  As of the end of the period
	covered by this Form 10-Q, we performed an evaluation, under the supervision
	and with the participation of management, including our Company's Chief
	Executive Officer and Chief Financial Officer, of the effectiveness of the
	design and operation of our disclosure controls and procedures as defined in
	Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934. Based
	upon that evaluation, the Chief Executive Officer and Chief Financial
	Officer concluded that our disclosure controls and procedures are effective
	in timely alerting them to material information relating to the Company
	(including its consolidated subsidiaries) required to be included in this
	Quarterly Report on Form 10-Q. There have been no significant changes in our
	internal controls or in other factors which could significantly affect
	internal controls over financial reporting during this most recent quarter
	or subsequent to the date we carried out our evaluation.    PART II -- OTHER INFORMATION  ITEM 1.     Legal Proceedings  Kentucky Investors is not involved in any legal proceedings. From time to
	time Investors Heritage Life is involved in litigation relating to claims
	arising out of its operations in the normal course of business. As of
	November 13, 2007, Investors Heritage Life is not a party to any legal
	proceedings, the adverse outcome of which, in management's opinion,
	individually or in the aggregate, would have a material adverse effect on
	our financial condition or results of operations.  ITEM 1A.     Risk Factors  There
	have been no material changes from risk factors as previously disclosed in
	our Annual Report on Form 10-K.  ITEM 2.     Unregistered Sales of
	Equity Securities and Use of Proceeds  No share
	repurchases were made pursuant to a publicly announced plan or program. All
	share repurchases were shares tendered by employees as part of our 401(k)
	plan.  ITEM 3.     Defaults Upon Senior
	Securities  None  ITEM 4.     Submission of Matters to a
	Vote of Security Holders  None  ITEM 5.     Other Information  None  ITEM 6.     Exhibits  31.1 & 31.2
				Certifications pursuant to Securities and
				Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to
				Section 302 of the Sarbanes-Oxley Act of 2002.32.1
				Certifications Pursuant to 18 U.S.C.
				Section 1350, as adopted pursuant to Section 906 of the
				Sarbanes-Oxley Act of 2002.
    SIGNATURES  Pursuant to the requirements of the
	Securities and Exchange Act of 1934, the registrant has duly caused this
	report to be signed on its behalf by the undersigned thereunto duly
	authorized.  KENTUCKY INVESTORS, INC.BY:
				/s/Harry Lee Waterfield IIHarry Lee Waterfield IIDATE: November 13, 2007
				
				PresidentBY:
				/s/Raymond L. CarrRaymond L. CarrDATE: November 13, 2007
				
				Vice President - Chief Financial Officer