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 September 30, 2000


                           Commission File No. 2-40764


                       Kansas City Life Insurance Company
                                  3520 Broadway
                        Kansas City, Missouri 64111-2565

                              Phone: (816) 753-7000

                             IRS Number: 44-0308260

                      Incorporated in the State of Missouri



The Registrant  (1) has filed all reports  required to be filed by section 13 or
15 (d) of the  Securities  Exchange Act of 1934 during the  preceding 12 months,
and (2) has been subject to such filing requirements for the past 90 days.

          Yes     X                                    No______

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the most recent date available.

          Class                                 Outstanding October 31, 2000
Common Stock, $1.25 par value                         12,016,228 shares


                       Kansas City Life Insurance Company
                        Quarter ended September 30, 2000

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 1999 Annual Report to Stockholders.

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

Results of Operations

Kansas City Life's  operating  earnings per share for the third  quarter rose 21
percent over last year to equal $1.20.  Including realized gains and losses, net
income per share equaled  $1.21,  an increase of 11 percent over last year.  For
the nine months,  operating  income per share rose 33 percent to equal $3.41 and
net  income per share rose 27 percent  to equal  $3.44.  The  increase  in third
quarter's  earnings was due to expanded  profit margins  resulting from improved
mortality  experience and from reduced operating expenses.  The increase for the
nine months was due to these two items as well as to the  unlocking  of deferred
acquisition cost assumptions which benefited earnings $4.0 million, as mentioned
in the second quarter's report.

Net investment  income decreased 1 percent in the third quarter and was flat for
the nine months.  Realized  investment gains and losses will vary from period to
period at management's discretion and/or due to economic conditions.  Investment
margins  narrowed  slightly  for the  interest  sensitive  products but expanded
somewhat  for  the  traditional  products.  Investable  funds  generated  by the
variable  products are  segregated  into  separate  accounts and do not generate
investment income for the Company.

Home office operating  expenses were flat in the third quarter,  but decreased 3
percent  in the  nine  months.  The  decrease  was  largely  due to the  savings
resulting from the  consolidation of Sunset Life's  operations into the parent's
home office in 1999. These savings emerged even after the absorption of start up
costs  associated  with the  development of Generations  Bank,  which opened its
doors on July 3.

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:

<TABLE>
<CAPTION>

                       Kansas City Life Insurance Company
                               Segment Information

                                                  Kansas City Life          Sunset        Old
                                              Individual       Group         Life       American      Total

<S>                               <C>         <C>              <C>          <C>          <C>         <C>
Revenues from external customers:
           Nine months:           2000        $  81,368        41,880       21,687       56,165      201,100
                                  1999           85,777        39,596       20,433       57,306      203,112
           Third quarter:         2000           26,833        13,487        7,109       18,557       65,986
                                  1999           29,836        13,475        7,022       18,949       69,282

Investment revenues:
           Nine months:           2000        $ 116,415           544       25,839       12,261      155,059
                                  1999          118,309           817       24,976       11,011      155,113
           Third quarter:         2000           38,984           174        8,864        4,185       52,207
                                  1999           39,899           217        8,608        3,820       52,544

Operating income:
           Nine months:           2000        $  26,300           476        8,381        5,894       41,051
                                  1999           22,104         (212)        5,600        4,230       31,722
           Third quarter:         2000            8,892         (121)        3,203        2,512       14,486
                                  1999            8,620          (70)        1,433        2,241       12,224
<FN>

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


Kansas City Life - Individual

Total  new  annualized  premiums  declined  4  percent  in  the  third  quarter.
Non-variable  universal  life sales  increased 8 percent  during the quarter and
variable  annuities  increased  2 percent.  These  increases  were offset by a 6
percent  decline in variable  universal  life sales,  an 18 percent  decrease in
non-variable flexible annuity sales and a 14 percent decline in traditional life
sales.  For the nine months,  new annualized  premiums rose 5 percent.  Variable
universal life sales increased 23 percent,  variable  annuity sales increased 24
percent,  and traditional life sales increased 10 percent.  Partially offsetting
these  increases,  non-variable  universal  life sales  declined  16 percent and
non-variable flexible annuity sales declined 36 percent.  Variable product sales
accounted for 78 percent of this segment's  total sales for the nine months,  up
from 66 percent a year ago.

This segment provided 78 percent of consolidated new annualized premiums for the
nine months, compared to 74 percent a year ago. On the basis of direct statutory
receipts,  new sales  increased 5 percent  over last year on the strength of new
variable  sales,  which increased 20 percent and equaled 81 percent of total new
sales.  New  non-variable  universal  life sales  declined  22  percent  and new
flexible annuities declined 22 percent.

Total insurance revenues, which include premium renewals and contract charges on
the interest sensitive products,  declined 11 percent in the third quarter and 6
percent in the nine months.

Total  benefits for this segment  decreased 7 percent in the third quarter and 5
percent in the nine  months.  Death  benefits  increased  2 percent in the third
quarter and 5 percent in the nine months.  Mortality experience for this segment
was less favorable  versus last year.  Traditional  life  surrenders  declined 1
percent  in the third  quarter  but  increased  11  percent  in the nine  months
compared  to  increases  of 3 percent  and 18 percent in the second  quarter and
first half,  respectively.  Total benefits,  as a percent of operating  revenue,
equaled 59 percent at the nine months, compared to 61 percent a year ago.

Operating  income  increased by 3 percent in the third quarter and by 19 percent
in the nine months.  This segment provided 40 percent of consolidated  insurance
revenues in the nine  months and 64 percent of  consolidated  operating  income,
compared with 42 percent and 70 percent, respectively, last year.

Kansas City Life - Group

Net  income  for the nine  months was $0.7  million  more than last  year.  This
improvement was primarily the result of improved sales revenues and a decline in
the claims ratio,  which  decreased from 75 percent last year to 73 percent this
year.

Group sales,  in terms of new  annualized  premiums,  declined 18 percent in the
third quarter and 9 percent in the nine months. However, excluding the stop loss
line, which was discontinued late last year, new annualized  premiums declined 6
percent in the third  quarter but  increased 7 percent in the nine  months.  The
group segment  provided 9 percent of  consolidated  annualized  premiums for the
nine months,  versus 10 percent  last year.  Group sales were lead by the dental
line,  which  declined 18 percent in the third quarter and rose 8 percent in the
nine months.

Total  benefits for this segment,  as a percent of revenues,  equaled 62 percent
for the third quarter,  versus 61 percent a year ago. For the nine months,  this
ratio was 61 percent,  compared to 62 percent a year ago. This segment  provided
21 percent of consolidated  insurance revenues in the nine months compared to 19
percent a year ago and 1 percent of operating earnings compared with a loss last
year.


Sunset Life

Sunset Life's new annualized  premiums  declined 54 percent in the third quarter
and 37 percent  in the nine  months.  The  impact is still  being felt from last
year's change in senior marketing  management and the  consolidation of Sunset's
operations into the home office.  Sunset Life contributed 5 percent of total new
annualized premiums during the nine months, down from 8 percent a year ago.

Total insurance revenues declined 4 percent in the third quarter,  but increased
3 percent in the nine  months.  Total  benefits  for this  segment  decreased 18
percent  in the third  quarter,  but  increased  8 percent  in the nine  months.
However,  this is an  improvement  compared  to  increases  of 42 percent in the
second  quarter and 30 percent in the first  half.  Death  benefits  declined 21
percent in the third quarter but  increased 3 percent in the nine months.  These
are  improvements  from a 10  percent  decline in the  second  quarter  and a 21
percent  increase in the first half.  These  improvements  result from mortality
experience,  which improved in the third  quarter,  but still trails last year's
experience.  Surrenders  of  traditional  life products more than doubled in the
third  quarter  and rose 29 percent in the nine  months.  Total  benefits,  as a
percent of operating  revenue equaled 51 percent in the nine months,  up from 49
percent last year. However,  for the third quarter this was 46 percent versus 58
percent in last year's third quarter.

Insurance  operating  expenses  declined 9 percent in the third  quarter  and 17
percent in the nine months,  reflecting savings resulting from the consolidation
of Sunset Life's operations into the home office.

Sunset  Life's  operating  income  more than  doubled in the third  quarter  and
increased  by half in the nine  months.  Sunset Life  contributed  11 percent of
consolidated  insurance revenues and 21 percent of consolidated operating income
in the nine months, versus 10 percent and 18 percent,  respectively,  last year.
For the third  quarter,  this  segment  contributed  22 percent of  consolidated
operating income compared with 12 percent last year.


Old American

Old  American's new  annualized  premiums  increased 1 percent in both the third
quarter and the nine  months.  This segment  contributed  7 percent of total new
annualized  premiums,  the same as last year.  On the basis of statutory  direct
receipts, new sales were level with last year.

Total  insurance  revenues  declined 2 percent in both the third quarter and the
nine  months.  Total  benefits  declined  4 percent in the third  quarter  and 1
percent in the nine months.  Mortality experience improved slightly in the third
quarter  and the nine  months.  Surrenders  increased  25  percent  in the third
quarter  and 18  percent  in the nine  months.  Total  benefits  as a percent of
operating  revenue equaled 55 percent in the third quarter and 58 percent in the
nine  months  compared  with  57  percent  and 59  percent  in the  prior  year,
respectively.  Old American's operating expenses declined 1 percent in the third
quarter and 6 percent in the nine months.

Operating income for this segment  increased 12 percent in the third quarter and
39 percent in the nine months.  This segment provided 14 percent of consolidated
operating income and 28 percent of consolidated  insurance revenues for the nine
months, compared to 13 percent and 28 percent, respectively, last year.

Changes in Reporting Regulations

Financial  Accounting Standard No. 133,  "Accounting for Derivative  Instruments
and for Hedging Activities,"  provides  comprehensive,  consistent standards for
the  recognition  and  measurement  of derivative  and hedging  activities.  The
standard is effective  January 1, 2001, and is being evaluated for its effect on
Kansas  City Life and to ensure its  implementation  in a timely  manner.  It is
currently  anticipated that the guideline will not have a significant  impact on
the Company's reported results.

Liquidity and Capital Resources

Statements made in the Company's Annual Report to Stockholders remain pertinent.
Liquidity is not a concern for the Company.  For the nine months,  cash provided
from operating  activities declined 28 percent to $34.4 million.  Funds from all
sources  totaled  $551.2  million,  a 22  percent  decline  from last  year.  At
September 30, 2000 the Company had $30.0 million of short-term borrowings,  down
$39.5  million  from year end.  The Company  uses these  borrowings  in order to
pursue interest spread strategies.  At September 30, 2000, separate accounts and
other  investments  generated by the variable  line totaled $358  million,  a 39
percent annualized increase from year end.

Assets  totaled  $3.6  billion,  the same as at year end.  Excluding  unrealized
investment gains and losses,  assets totaled $3.7 billion,  level with year end.
Consolidated  insurance in force totaled $26.9 billion,  a 1 percent increase on
an  annualized  basis.  Book value per share totaled  $44.31,  an increase of 11
percent  on an  annualized  basis.  Excluding  unrealized  investment  gains and
losses, book value per share equaled $47.99, an annualized growth of 8 percent.

During the nine months, the Company purchased 126,200 shares of its common stock
for $4.0 million under the stock  repurchase  program.  Under this program,  the
Company may purchase up to one million shares during 2000.

The Board of  Directors  declared a quarterly  dividend  of $.25 per share,  a 4
percent increase over last year's dividend of $.24 per share.

Market and Interest Rate Risk Analysis

Statements  made in the 1999 Annual  Report to  Stockholders  pertaining  to the
market and interest rate risk  analysis  remain  pertinent.  As mentioned in the
Annual  Report,  the primary  market risk  affecting  Kansas City Life  concerns
interest  rates.  As market  interest  rates  fluctuate,  so will the  Company's
investment  portfolio and its  stockholders'  equity. At September 30, 2000, the
Company had an unrealized investment loss of $44.4 million, net of related taxes
and deferred policy  acquisition  costs, down from the $53.4 million  unrealized
loss  reported  at year end 1999.  This  decrease  is  primarily  the  result of
decreased interest rates in the corporate bond market during the nine months.


Part II:  Other Information

Item 6.

(a)  Exhibits - Report on Form 8-K dated  August 18,  2000 and  incorporated  by
reference herein.

(b)  Reports on Form 8-K - the Company  filed a report on Form 8-K dated  August
18, 2000 announcing  that the Executive  Committee of the Board of Directors had
engaged  the  accounting  firm of KPMG LLP as  independent  accountants  for the
Registrant.  The work of Ernst & Young LLP was terminated  concurrently with the
engagement of KPMG LLP.


                                   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:  November 6, 2000


Consolidated
Balance Sheet
(in thousands)

                                    September 30     December 31
                                        2000           1999
                                   -------------  -------------
Assets
Investments:
  Fixed maturities:
    Securities available for sale,
      at market                      $ 1,948,435      1,999,215
    Securities held to maturity,
      at amortized cost                   89,733        107,606
  Equity securities available
    for sale, at market                  106,080        115,968
  Mortgage loans                         369,786        340,704
  Short-term                              26,846         19,380
  Other                                  198,472        197,868
                                   -------------  -------------
                                       2,739,352      2,780,741

Cash                                       7,767         22,355
Deferred acquisition costs               243,738        236,370
Other assets                             307,845        321,919
Separate account assets                  336,609        259,899
                                   -------------  -------------

                                     $ 3,635,311      3,621,284
                                   =============  =============

Liabilities and equity
Future policy benefits               $   821,206        829,556
Accumulated contract values            1,634,300      1,688,706
Notes Payable                             30,000         69,500
Current Income taxes payable               7,130          7,870
Other liabilities                        272,483        271,948
Separate account liabilities             336,609        259,899
                                   -------------  -------------
  Total liabilities                    3,101,728      3,127,479

Stockholders' equity:
  Capital stock                           23,121         23,121
  Paid in capital                         19,920         18,498
  Accumulated other comprehensive loss   (50,039)       (59,095)
  Retained earnings                      646,663        614,278
  Less treasury stock                   (106,082)      (102,997)
                                   -------------  -------------
                                         533,583        493,805
                                   -------------  -------------

                                     $ 3,635,311      3,621,284
                                   =============  =============

Notes:
*  Comprehensive income (loss) equals $50,472,000 and
   $(41,718,000), for 2000 and 1999, respectively,
   and $27,711,000 and $(2,958,000) for the third quarter
   of 2000 and 1999.  This varies from net income
   due to unrealized gains or losses on securities.

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

*  Income per common share is based upon the weighted
   average number of shares outstanding during the period,
   12,037,380 shares (12,370,974 shares - 1999).

*  These interim financial statements should be read in
   conjunction with the Company's 1999 Annual Report to
   Stockholders.  The results of operations for any
   interim period are not necessarily indicative of
   the Company's operating results for a full year.

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


Consolidated
Income Statement
(in thousands, except per share data)
                                              Quarter ended  Nine Months ended
                                               September 30      September 30
                                              2000     1999     2000     1999
                                            -------  -------  -------  -------
Revenues
Insurance revenues:
  Premiums:
    Life insurance                         $ 25,103   26,713   74,605   79,049
    Accident and health                      10,772   10,813   33,124   31,636
  Contract charges                           26,609   28,663   81,877   81,912
Investment revenues:
  Investment income, net                     52,207   52,544  155,059  155,113
  Realized gains                                139    1,842      561    2,519
Other                                         3,502    3,094   11,494   10,516
                                            -------  -------  -------  -------
    Total revenues                          118,332  123,669  356,720  360,745
                                            -------  -------  -------  -------
Benefits and expenses
Policy benefits:
  Death benefits                             27,377   28,152   86,156   84,308
  Surrenders of life insurance                3,922    3,775   12,540   11,201
  Other benefits                             18,810   18,870   54,541   53,307
  Increase in benefit and contract reserves  16,701   21,136   53,341   61,401
Amortization of policy acquisition costs      7,245    7,259   18,527   27,294
Insurance operating expenses                 24,125   24,976   72,962   75,623
                                            -------  -------  -------  -------
    Total benefits and expenses              98,180  104,168  298,067  313,134
                                            -------  -------  -------  -------

Pretax income                                20,152   19,501   58,653   47,611
                                            -------  -------  -------  -------
Federal income taxes:
  Current                                     3,680    4,226   14,997   15,180
  Deferred                                    1,896    1,853    2,240     (928)
                                            -------  -------  -------  -------
                                              5,576    6,079   17,237   14,252
                                            -------  -------  -------  -------

Net income                                $  14,576   13,422   41,416   33,359
                                            =======  =======  =======  =======

Per common share
  Operating income                           $ 1.20     0.99     3.41     2.56
  Realized investment gains, net               0.01     0.10     0.03     0.14
                                            -------  -------  -------  -------


  Net income                                 $ 1.21     1.09     3.44     2.70
                                            =======  =======  =======  =======

  Cash dividends                             $ 0.25     0.24     0.75     0.72

     CONSOLIDATED
STATEMENT OF CASH FLOWS
    (in thousands)
                                                           Nine Months ended
                                                              September 30
                                                            2000         1999
 Operating activities
   Net cash provided                                      $34,417       47,512

 Investing activities
   Purchases of fixed maturities available for sale      (243,191)    (475,250)
   Sales of fixed maturities available for sale           236,207      263,554
   Sales of equity securities available for sale           34,831       19,984
   Maturities and principal paydowns of
     fixed maturity investments:
         Available for sale                                61,963      137,206
         Held to maturity                                  20,855       10,490
   Purchases of other investments                         (83,746)     (78,023)
   Sales, maturities and principal paydowns
     of other investments                                  32,918       40,452
   Decrease (increase) in short-term investments           (7,619)      44,118

   Net cash provided (used)                                52,218      (37,469)

 Financing activities
 Policyowner contract deposits                            101,754      114,615
 Withdrawals of policyowner
   contract deposits                                     (152,784)    (133,181)
 Dividends paid to stockholders                            (9,031)      (8,925)
 Treasury stock acquired                                   (4,502)     (11,223)
 Proceeds from borrowings                                  25,400       30,000
 Repayment of borrowings                                  (64,900)           0
 Other, net                                                 2,840        1,087

   Net cash used                                         (101,223)      (7,627)

 Decrease (increase) in cash                              (14,588)       2,416
 Cash at beginning of year                                 22,355       16,763

  Cash at end of period                                    $7,767       19,179


Message  from the President and CEO

     Kansas City Life  achieved a 21 percent  increase in operating  earnings in
the third quarter to $1.20 a share due to expanded profit margins resulting from
improved mortality  experience and reduced operating expenses.  The nine months'
operating  earnings  rose 33 percent to $3.41 a share due to these two items and
the unlocking of deferred  acquisition cost assumptions.  Net income,  which was
impacted  by a decline  in  realized  investment  gains,  rose 11 percent in the
quarter to $1.21 a share and 27 percent for the nine months to $3.44 per share.

     Our strong earnings  performance  arose  principally from the three factors
noted above. First,  mortality experience  fluctuates over time, but it has been
particularly  favorable this year in both the block of insurance  acquired three
years  ago  and at our  insurance  affiliates.  Second,  home  office  operating
expenses  declined 3 percent  largely  due to  efficiencies  gained  through the
consolidation  of Sunset Life's  operations into the home office.  These savings
emerged even as we absorbed start up costs associated with developing a bank and
actively managing our customer relationships. These two initiatives are expected
to leverage our  customer  base in order to increase  revenues  and  stockholder
value.  Third,  as discussed last quarter we changed,  or unlocked,  assumptions
associated  with the  amortization of deferred  acquisition  costs in the second
quarter. This benefited pretax earnings $4.0 million in that quarter. The change
reflects  our  anticipation  that we will achieve  wider  profit  margins on our
universal  life  business  than  originally  assumed,  primarily due to improved
mortality experience.

     Sales, in terms of new annualized premiums, remained level through the nine
months, but declined 10 percent in the third quarter. Sales of variable products
rose 23 percent for the nine months, but the growth slowed in the third quarter.
The line provided 61 percent of consolidated  new premiums.  Assets generated by
the  variable  business  rose 39  percent,  annualized,  to total $358  million.
Offsetting the variable line's  success,  sales of interest  sensitive  products
declined, reflecting general consumer preference for variable products. However,
given the current  volatile  financial  markets,  Kansas City Life  remains well
positioned by offering variable,  interest sensitive and traditional products to
the  marketplace.  Kansas  City Life will  introduce  a new fixed  rate  annuity
product later this year and its second generation of variable universal life and
annuity  products  early next year.  Life insurance in force has risen 1 percent
this year to $26.9 billion.

     Insurance revenues in the attached financial  statements  declined slightly
in both the  quarter  and nine  months.  Modest  growth in  accident  and health
premiums,  provided by the group  dental  line,  was offset by a decline in life
insurance premiums and a leveling off of the growth in contract charges.

     Investment  income was  unchanged as the  investment  portfolio  declined 1
percent from a year ago. Investable funds generated by the variable products are
partitioned off in separate accounts and do not benefit the Company's investment
earnings.  Investment  margins  narrowed  slightly  for the  interest  sensitive
products but expanded somewhat for the traditional products.

     Jack  D.  Hayes,  Senior  Vice  President,  Marketing,  has  announced  his
retirement.  Jack headed Kansas City Life's marketing efforts for the past seven
years and guided the Company  into  variable  products.  He will be succeeded by
Bret L. Benham, currently Vice President, Agency Marketing.

     Book value rose to $44.31 a share. Excluding unrealized gains and losses on
the securities  portfolio due to changes in market  interest  rates,  book value
rose 8 percent, annualized, to $47.99 a share.

     A regular  quarterly  dividend of $.25 a share was approved by the Board of
Directors to be paid November 20 to stockholders of record on November 6.