| SECURITIES ANDEXCHANGE COMMISSION                                                                                                                                                                                                                                                                                                                                                      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                        |
| WASHINGTON,DC                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                        |
| FORM10-Q                                                                                                                                                                                                                                                                                                                                                                               |
| QUARTERLYREPORT                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                        |
| Under Section 13or 15(d) of the Securities Exchange Act of 1934                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                        |
| FOR THREE MONTHSENDED                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                        |
| March 31,2002                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                        |
| Commission File:0-1999                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                        |
| KENTUCKYINVESTORS, INC.                                                                                                                                                                                                                                                                                                                                                                |
| (Exact Name ofregistrant as specified in Charter)                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                        |
| KENTUCKY                                                                                                                                                                                                                                                                                                                                                                               |
| (State of OtherJurisdiction of Incorporation or Organization)                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                        |
| 61-6030333                                                                                                                                                                                                                                                                                                                                                                             |
| (IRS EmployerIdentification Number)                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                        |
| 200 CapitalAvenue, P. O. Box 717                                                                                                                                                                                                                                                                                                                                                       |
| Frankfort,Kentucky 40602                                                                                                                                                                                                                                                                                                                                                               |
| (Address ofPrincipal Executive Offices)                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                        |
| Registrant'sTelephone Number - (502) 223-2361                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                        |
| Securitiesregistered pursuant to Section 13(g) of the Act:                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                        |
| Common CapitalStock par value $1.00 per share                                                                                                                                                                                                                                                                                                                                          |
| (Title ofClass)                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                        |
| Number ofoutstanding shares as of March 31, 2002 - 1,132,792.720                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                        |
| Indicate by check mark whetherthe registrant (1) has filed all reports required to be filed bySection 13 or 15(d) of the Securities Exchange Act of 1934 duringthe preceding 12 months (or for such shorter period that theregistrant was required to file such reports), and (2) has beensubject to such filing requirements for the past 90 days. Yes  X   No___ |

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| ****

**PART I -CONSOLIDATED FINANCIAL STATEMENTS**                                                                                                                                                                                                                                                                                                                                                                                                                  |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| **ITEM 1.** Thefollowing condensed consolidated financial statements have beenprepared by management in accordance with accounting principlesgenerally accepted in the United States (GAAP). In management'sopinion, all adjustments and certain reclassifications necessaryfor a fair statement of financial position at March 31, 2002 andDecember 31, 2001 and the results of operations for the three monthperiods ended March 31, 2002 and 2001 have been made. |

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|                                                                          | **KENTUCKYINVESTORS, INC.**                                    |
|-------------------------------------------------------------------------------|----------------------------------------------------------------|
|                                                                          |                                                                |
|                                                                          | **CondensedConsolidated Balance Sheets**                       |
|                                                                          |                                                                |
|                                                                               | (Unaudited)                                                    |  |
|                                                                               | March 31,2002                                                  | December 31,2001 |
| Assets                                                                        |                                                                |  |
|    Investments                                                 |                                                                |  |
|      Fixed maturitiesavailable for sale at           |                                                                |  |
|        fair value(amortized cost           |                                                                |  |
|        2002-$242,058,703- 2001 -           |                                                                |  |
|        $235,124,000                        | $247,087,848                                              | $243,831,823  |
|    Mortgageloans on real estate                                | 23,858,145                                                | 24,710,790  |
|    Short terminvestments                                       | 802,560                                                   | 837,560  |
|    Otherinvestments                                            |     9,942,657                         |      9,925,227  |
|                                                                               |                                                                |  |
|        Totalinvestments                    | $281,691,210                                              | $279,305,400  |
|                                                                               |                                                                |  |
|    Cash and cashequivalents                                    | 4,311,346                                                 | 6,432,594  |
|    Due anddeferred premiums                                    | 4,633,089                                                 | 4,544,329  |
|    Deferredacquisition costs                                   | 25,813,771                                                | 24,930,081  |
|    Present valueof future profits                              | 496,012                                                   | 514,585  |
|    Leasedproperty under capital leases                         | 415,009                                                   | 449,033  |
|    Goodwill                                                    | -                                                         | 970,862  |
|    Otherassets                                                 | 6,738,881                                                 | 6,926,941  |
|    Amountsrecoverable from reinsurers                          |     66,544,699                        |     66,704,355  |
|                                                                               |                                                                |  |
|                                                                               | $390,644,017                                              | $390,778,180  |
|                                                                               |                                                                |  |
| Liabilities and Stockholders'Equity                                           |                                                                |  |
|    Liabilities                                                 |                                                                |  |
|      Policyliabilities                               |                                                                |  |
|        Benefitreserves                     | $311,759,839                                              | $306,419,302  |
|        Unearnedpremium reserves            | 20,912,912                                                | 21,550,803  |
|        Otherpolicyholders' funds           |      4,649,161                   |      4,648,807  |
|          Totalpolicy liabilities | $337,321,912                                              | $332,618,912  |
|        Federalincome taxes                 | 5,153,774                                                 | 6,233,425  |
|        Obligationsunder capital leases     | 410,657                                                   | 443,544  |
|        Notespayable                        | 2,183,927                                                 | 2,244,074  |
|        Otherliabilities                    |      5,843,592                   |      6,310,572  |
|                                                                               |                                                                |  |
|        Totalliabilities                    | $350,913,862                                              | $347,850,527  |
|                                                                               |                                                                |  |
| Stockholders' Equity                                                          |                                                                |  |
|    Common Stock(shares issued:                                 |                                                                |  |
|      2002 - 1,132,793 - 2001- 1,132,960              | $    1,132,793                        | $    1,132,960  |
|    Paid-insurplus                                              | 8,413,332                                                 | 8,413,332  |
|    Accumulatedother comprehensive                              |                                                                |  |
|      Income                                          | 3,329,967                                                 | 5,737,351  |
|    Retainedearnings                                            |     26,854,063                        |     27,644,010  |
|                                                                               |                                                                |  |
|        Totalstockholders' equity           | $  39,730,155                                   | $  42,927,653  |
|                                                                               |                                                                |  |
|                                                                               | $390,644,017                                              | $390,778,180  |
| See accompanyingnotes.

**KENTUCKYINVESTORS, INC.**                           |                                                           |
|                                                                               |                                                           |
| **CondensedConsolidated Income Statements (Unaudited)**                       |                                                           |
|                                                                          |                                                                |  |
|                                                                          |                                                                | Three MonthsEnded March 31 |
|                                                                          |                                                                |            2002 |             2001 |
|                                                                          | REVENUES                                                       |  |  |
|                                                                          |                                                                |  |  |
|                                                                          |    Premiums andother considerations             | $13,894,768  | $12,320,718  |
|                                                                          |    Investmentincome, net of expenses            | 4,474,213  | 4,511,743  |
|                                                                          |    Realized gainon investments, net             | 331,728  | 98,595  |
|                                                                          |    Otherincome                                  |       226,777  |       249,459  |
|                                                                          |                                                                |  |  |
|                                                                          |       Totalrevenues              | $18,927,486  | $17,180,515  |
|                                                                          |                                                                |  |  |
|                                                                          | BENEFITS ANDEXPENSES                                           |  |  |
|                                                                          |                                                                |  |  |
|                                                                          |    Death andother policyholder benefits         | $  8,408,700  | $  7,750,829  |
|                                                                          |    Guaranteedannual endowments                  | 174,376  | 181,896  |
|                                                                          |    Dividends topolicyholders                    | 172,615  | 173,899  |
|                                                                          |    Increase inbenefit reserves and unearned     |  |  |
|                                                                          |      Premiums                         | 5,689,408  | 4,529,137  |
|                                                                          |    Amortizationof deferred acquisition          |  |  |
|                                                                          |      costs, net                       | (527,928) | (489,825) |
|                                                                          |    Commissions                                  | 1,508,569  | 1,525,591  |
|                                                                          |    Otherinsurance expenses                      |     2,678,474  |     2,440,058  |
|                                                                          |                                                                |  |  |
|                                                                          |       Total benefits andexpenses | $18,104,214  | $16,111,585  |
|                                                                          |                                                                |  |  |
|                                                                          | Income from operations beforeFederal                           |  |  |
|                                                                          |    income taxand cumulative effect of           |  |  |
|                                                                          |    change inaccounting principle                | $     823,272  | $  1,068,930  |
|                                                                          |                                                 |  |  |
|                                                                          | Provision for incometaxes:                                     |  |  |
|                                                                          |    Current                                      | $     160,516  | $        43,754  |
|                                                                          |    Deferred                                     |         12,000  |        333,000  |
|                                                                          |                                                                |  |  |
|                                                                          |                                                                | $     172,516  | $     376,754  |
|                                                                          |                                                                |  |  |
|                                                                          | Income before cumulative effectof change                       |  |  |
|                                                                          |    in accountingprinciple                       | $     650,756  | $     692,176  |
|                                                                          |                                                                |  |  |
|                                                                          | Cumulative effect of changein                                  |  |  |
|                                                                          |    accountingprinciple                          | $   (970,862) | $            0.00 |
|                                                                          |                                                                |  |  |
|                                                                          | Net Income                                                     | $   (320,106) | $     692,176  |
|                                                                          |                                                                |  |  |
|                                                                          | Earnings per share:                                            |  |  |
|                                                                          |    Beforecumulative effect of change in         |  |  |
|                                                                          |       accountingprinciple        | $            0.57  | $            0.60  |
|                                                                          |    Cumulativeeffect of change in                |  |  |
|                                                                          |       accountingprinciple        | $         (0.85) | $            0.00  |
|                                                                          |                                                                |  |  |
|                                                                          | Earnings per share                                             | $         (0.28) | $           0.60  |
|                                                                          |                                                                |  |  |
|                                                                          | Dividends per share                                            | $           0.38  | $           0.38  |

See accompanyingnotes.

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| **KENTUCKYINVESTORS, INC.**                                                                                           |
|-----------------------------------------------------------------------------------------------------------------------|
|                                                                                                                       |
| **CondensedConsolidated Statements of Cash Flow (Unaudited)**                                                         |
|                                                                                                                       |  |
|                                                                                                                       |          ThreeMonths Ended March 31 |
|                                                                                                                       |                 2002 |                 2001 |
|                                                                                                                       |  |  |
| Net cash provided by operatingactivities                                                                              | $    4,761,751  | $    6,298,657  |
|                                                                                                                       |  |  |
| Investing activities                                                                                                  |  |  |
|    Securitiesavailable-for-sale:                                                                       |  |  |
|      Purchases                                                                               | $(14,115,000) | $(10,063,780) |
|      Sales andmaturities                                                                     | 7,147,120  | 5,074,636  |
|    Otherinvestments:                                                                                   |  |  |
|      Cost ofacquisition                                                                      | (48,630) | (1,082,720) |
|      Sales andmaturities                                                                     | 894,206  | 2,358,037  |
|    Otherinvesting activities                                                                           |         (75,044) |           13,559  |
|                                                                                                                       |  |  |
| Net cash used by investingactivities                                                                                  | $  (6,197,348) | $ (3,700,268) |
|                                                                                                                       |  |  |
| Financing Activities                                                                                                  |  |  |
|    Receipts fromuniversal life policies      credited topolicyholders account |  |  |
|      balances                                                                                | $   1,916,477  | $   1,443,536  |
|    Return ofpolicyholder account balances                                                              |  |  |
|      on universal lifepolicies                                                               | (2,071,973) | (2,030,273) |
|    Net proceeds(borrowings) from notes                                                                 |  |  |
|      payable                                                                                 | (60,147) | 53,807  |
|    Otherfinancing activities                                                                           |       (470,008) |       (598,512) |
|                                                                                                                       |  |  |
| Net cash used by financingactivities                                                                                  | $    (685,651) | $  (1,131,442) |
|                                                                                                                       |  |  |
| Increase (decrease) in cash andcash                                                                                   |  |  |
|    equivalents                                                                                         | $ (2,121,248)  | $    1,466,947  |
|                                                                                                                       |  |  |
| Cash and cash equivalents atbeginning                                                                                 |  |  |
|      of period                                                                               |      6,432,594  |       3,324,447  |
|                                                                                                                       |  |  |
| Cash and cash equivalents atend of period                                                                             | $   4,311,346  | $    4,791,394  |

See accompanyingnotes.

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**KENTUCKYINVESTORS, INC.**

******

## **NOTES TO CONDENSEDCONSOLIDATED FINANCIAL STATEMENTS**

**March 31,2002**

**(Unaudited)**

****

**NOTE A - Natureof Operations:**KentuckyInvestors, Inc. (Kentucky Investors) is the holding company ofInvestors Heritage Life Insurance Company (Investors Heritage),Investors Heritage Printing, Inc., a printing company and InvestorsHeritage Financial Services Group, Inc., an insurance marketingcompany. These entities are collectively hereinafter referred to asthe “Company”. The operations of Kentucky Investors areprincipally that of its life insurance company, Investors Heritage.The operations of the non-insurance subsidiaries of KentuckyInvestors accounts for less than 1% of the Company’s totaloperations.

TheCompany’s operations involve the sale and administration ofvarious insurance and annuity products, including, but not limitedto, participating, non-participating, whole life, limited pay,universal life, annuity contracts, credit life, credit accident andhealth and group insurance policies. The principal markets for theCompany’s products are in the Commonwealths of Kentucky andVirginia, and the states of North Carolina, South Carolina, Ohio,Indiana, Florida, Tennessee, Illinois, Georgia, West Virginia,Arizona, Michigan, Mississippi and Texas.

**NOTE B - Basisof Presentation:**Theaccompanying unaudited condensed consolidated financial statementsof the Company have been prepared in accordance with accountingprinciples generally accepted in the United States for interimfinancial information and the instructions to Form 10-Q and Article10 of Regulation S-X. Accordingly, they do not include all of theinformation and footnotes required by accounting principlesgenerally accepted in the United States for complete financialstatements. In the opinion of management, all adjustments(consisting of normal recurring accruals) considered necessary fora fair presentation have been included. Operating results for thethree months ended March 31, 2002, are not necessarily indicativeof the results that may be expected for the year ending December31, 2002. For further information, refer to the consolidatedfinancial statements and footnotes thereto for the year endedDecember 31, 2001, included in the Company’s Annual Report onForm 10-K.

The preparation offinancial statements in conformity with accounting principlesgenerally accepted in the United States requires management to makeestimates and assumptions that affect the amounts reported in thefinancial statements and accompanying notes. Actual results coulddiffer from those estimates.

Certain priorperiod amounts have been reclassified to conform to the currentperiod presentation.

**NOTE C -Earnings per Share:**Earnings per share of common stock were computed basedon the weighted average number of common shares outstanding duringeach period. The number of shares used in this computation for theCompany is 1,132,843 and 1,146,611 for March 31, 2002 and 2001,respectively.

**NOTE D -Segment Data:**TheCompany operates 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 theapplicable segment. Net investment income is generally allocated tothe insurance and the corporate segments in proportion to policyliabilities and stockholders’ equity, respectively. Corporatesegment results for the parent company, Investors HeritagePrinting, Inc. and Investors Heritage Financial Services Group,after elimination of intercompany amounts, arepresented.

****
|                                                            | **Three MonthsEnded**                                                                       |
|------------------------------------------------------------|---------------------------------------------------------------------------------------------|
|                                                            | **March 31,2002**                                                                           | **March 31,2001** |
|                                                            |                                                                                             |  |
| Revenues:                                                  |                                                                                             |  |
|    Preneed &Burial Products             | $14,828,410                                                                            | $13,266,524  |
|    Traditional& Universal Life Products | 3,203,616                                                                              | 3,180,420  |
|    CreditInsurance Products &           |                                                                                             |  |
|       AdministrativeServices | 57,469                                                                                 | 121,137  |
|    Corporate& Other                     |        837,991                                 |        612,434  |
|                                                            | $18,927,486                                                                            | $17,180,515  |
|                                                            |                                                                                             |  |
| Pre-Tax Income fromOperations:                             |                                                                                             |  |
|    Preneed &Burial Products             | $      (72,352)                                               | $     453,310  |
|    Traditional & Universal LifeProducts | 498,581                                                                                | 380,617  |
|    CreditInsurance Products &           |                                                                                             |  |
|       AdministrativeServices | (4,545)                                                                                     | 45,939  |
|    Corporate& Other                     |        401,588        |        189,064     |
|                                                            | $     823,272                                                 | $  1,068,930      |

****

**NOTE E -Federal Income Taxes:**Current taxes are provided based on estimates of theprojected effective annual tax rate. Deferred taxes reflect the nettax effects of temporary differences between the carrying amountsof assets and liabilities for financial reporting purposes and theamounts used for income tax purposes.

****

**NOTE F –Comprehensive Income:**The components of comprehensive income (loss), net ofrelated tax, are as follows:
|                                                    | **Three MonthsEnded**                          |
|----------------------------------------------------|------------------------------------------------|
|                                                    | **March 31,2002**                              | **March 31,2001** |
| Net income                                         | $      (320,106) | $       692,176  |
| Net unrealizedgains (losses) on available-for-sale |                                                |  |
|   Securities                             |      (2,407,384)      |       2,500,348  |
| Comprehensiveincome (loss)                         | $   (2,727,490)                 | $    3,192,524  |

****

**NOTE G –New Accounting Pronouncements:**In June 2001, the Financial Accounting Standards Board(FASB) issued Statements of Financial Accounting Standards (SFAS)No. 141, “Business Combinations”, which eliminates thepooling-of-interest method of accounting for business combinationsand requires the use of the purchase method. In addition, SFAS 141requires the reassessment of intangible assets to determine if theyare appropriately classified either separately or within goodwill.SFAS 141 is effective for business combinations initiated afterJune 30, 2001. The Company adopted SFAS 141 on January 1, 2002,with no material impact on the financial statements.

In June 2001, theFASB also issued SFAS 142, “Goodwill and Other IntangibleAssets,” which eliminates the amortization of goodwill andother acquired intangible assets with indefinite economic usefullives. SFAS 142 requires, at least annually, an impairment test ofgoodwill and other intangible assets with indefinite useful lives.The Company adopted SFAS 142 on January 1, 2002.

In accordance withthe provisions of SFAS 142, the Company ceased amortization ofgoodwill and all intangible assets with indefinite useful lives.The Company has performed the requisite transitional impairmenttests for these assets as of January 1, 2002 and $970,862 ofgoodwill, associated with the 1981 acquisition of InvestorsHeritage of the South and the 1982 acquisition of CommercialTravelers Life Insurance Company, was recorded as a cumulativeeffect of a change in accounting principle in the first quarter of2002.

A reconciliationof the previously reported 2001 statement of income information topro forma amounts that reflect the elimination of amortization ofgoodwill is presented below:
|                         | **Three MonthsEnded**

**March 31,2001**                     |
|-------------------------|--------------------------------------------------------------|
|                         | Amount                                                       | PerShare |
| Net income, asreported  | $     692,176                  | $       0.60  |
| Amortization ofgoodwill |         12,136  |         0.01  |
| Pro forma net income    | $     704,312                  | $       0.61  |

**NOTE H - SubsequentEvent:** On May 9, 2002, at the Annual Meeting ofShareholders, the Company was authorized to issue 8,000,000 sharesof a new class of undesignated, non-voting preferred stock. The Board of Directors will establish and designate differentseries within the new class of preferred stock and fix anddetermine the relative rights and preferences of each new series.To date no shares have been issued and the Company has no currentplans to issue such shares.
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **ITEM 2. Management'sDiscussion and Analysis of Financial Condition and Results ofOperations.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| **General**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Kentucky Investors, Inc. (theCompany) is incorporated under the laws of the Commonwealth ofKentucky and wholly owns Investors Heritage Life Insurance Company,a life insurance company also incorporated under the laws of theCommonwealth of Kentucky, Investors Heritage Financial ServicesGroup, Inc., an insurance marketing company which was formed in1994, and Investors Heritage Printing, Inc., a printing companythat provides printing to Investors Heritage and other unaffiliatedparties.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Investors Heritage offers afull line of life insurance products including, but not limited to,whole life, term life, single premium life, multi-pay life andannuities. Investors Heritage's primary lines of business areinsurance policies and annuities utilized to fund preneed funeralcontracts, credit life and credit disability insurance, and termlife and reducing term life sold through financialinstitutions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Investors Heritage introduced anew whole life final expense product during the third quarter of2001. The new product, Heritage Final Expense replaced the Legacy2000 Final Expense series and is being marketed through funeralhomes and independent agencies. Investors Heritage entered into areinsurance agreement with Munich American Reassurance Company withregard to this new product to help reduce the initial surplusstrain and minimize fluctuations in future profits.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Investors Heritage alsoprovides term insurance products, both on a decreasing and a levelbasis. During 2001 a new Term to 95 product was introduced thatreplaced the Level Best Term product. We will continue to provideour decreasing term policy that is primarily sold through financialinstitutions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| The Company's operatingearnings are derived primarily from revenues generated from thesale of insurance products by Investors Heritage, plus theCompany's investment results, including realized gains (losses),less interest credited, benefits to policyholders andexpenses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| While the Company continues toexpand the operations of Financial Services Group and Heritage Printing less than 1% of the Company's total operationswere generated by those subsidiaries. As expected, more than 10% ofFinancial Service Group's revenues during the first quarter 2002were derived from the sale of Investors Heritage's credit insuranceproducts. The Company anticipates a dividend to be paid byFinancial Services Group during the fourth quarter in 2002. A smalldividend was declared and paid by Heritage Printing during2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| The Company's primary uses ofcash are operating expenses, debt service and dividend payments,and the Company's principal sources of cash are the dividends paidto it by Investors Heritage, Financial Service Group and HeritagePrinting. Investors Heritage's principal sources of cash are fromthe sale of life insurance policies and investment income,including realized gains (losses), less benefits to policyholdersand expenses. Therefore, the remainder of the discussion will dealwith the financial condition and results of operations of InvestorsHeritage.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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| **Investments, Liquidity andCapital Resources**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
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| Premiums, which includemortality and expense charges, and investment income are InvestorsHeritage's primary sources of cash flow used to meet short-term andlong-term cash requirements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
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| Investors Heritage's short-termobligations consist primarily of policyholder benefits andoperating expenses. Investors Heritage has historically been ableto meet these obligations out of operating cash, premiums andinvestment income.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
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| Management is not aware of anycommitments or unusual events that could materially affect capitalresources. During the fourth quarter of 2000 Kentucky Investorsborrowed $2,000,000 on a long-term basis; and an additional$400,000 was borrowed during the second quarter of 2001, however,there is no short-term external debt. Kentucky Investors utilized$200,000 of the loan amount to reduce debt to Investors Heritageand $1,800,000 was loaned to Investors Heritage in exchange for asurplus note. The note calls for Investors Heritage to pay, on orbefore the first day of each quarter, interest at an 8.5% annualrate, upon prior approval by the Kentucky Department of Insurance.Such interest may be paid out of Investors Heritage's earnedsurplus, operating income, or paid-in and contributed surplus. TheCompany also has a $150,000 line-of-credit note with a bank, ofwhich none is outstanding at March 31, 2002. However, the Companyand Investors Heritage will continue to explore variousopportunities including corporate reorganizations, acquisitions andpurchasing blocks of business from other companies, which maydictate a need for either long-term or short-term debt.                                                                                                                                                                                                                                    |
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| During the first quarter 2002,the Board of Directors directed that there be submitted to theshareholders at the annual meeting a proposed amendment to theArticles of Incorporation to authorize the issuance of 8,000,000shares of a new class of undesignated, non-voting preferred stock.On May 9, 2000, at the Annual Meeting of Shareholders, theshareholders approved the proposed amendment. The Board ofDirectors will establish and designate different series within thenew class of preferred stock and fix and determine the relativerights and preferences of each new series. To date no shares havebeen issued and the Company has no current plans to issue suchshares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
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| Investors Heritage hasmaintained a sound, conservative investment strategy. At March 31,2002, 87.7% of invested assets consisted of fixed income publicbonds compared to 87.3% at December 31, 2001. Fixed income assetsare managed by Conning Asset Management Company, an independentportfolio manager.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
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| Additionally, InvestorsHeritage also engages in commercial and residential mortgagelending with approximately 95% of these investments being incommercial properties. All mortgage loans are originated in-houseand all loans are secured by first mortgages on the real estate. AtMarch 31, 2002, 8.5% of invested assets consisted of mortgage loanscompared to 8.8% at December 31, 2001. Management anticipatesfunding several new mortgage loan investments during the remainderof 2002 to maintain a similar to slightly higher percentage ofmortgage loans to total invested assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
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| Investors Heritage'sconservative approach in the product development area and thestrength and stability of its fixed income and mortgage loanportfolios provide adequate liquidity both in the short-term andthe long-term. At March 31, 2002, and at December 31, 2001Investors Heritage's fixed income investments were 99.6% investmentgrade as rated by Standard & Poor's. None of InvestorsHeritage's fixed income assets are in default and there has been nomaterial change in the distribution of its fixed incomeportfolio.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
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| Investors Heritage's principallong-term obligations are fixed contractual obligations incurred inthe sale of its life insurance products. The premiums charged forthese products are based on conservative and actuarially soundassumptions as to mortality, persistency and interest. InvestorsHeritage believes these assumptions will produce revenuessufficient to meet its future contractual benefit obligations andoperating expenses, and provide an adequate profitmargin.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
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| **Results ofOperations**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
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| Total premium income (net ofreinsurance) increased 12.8% when compared to the first quarter of2001 due primarily to increases in pre-need sales. Net investmentincome for the first quarter 2002 compared to the first quarter of2001 decreased 0.8%. The decrease is primarily due to the loweryield rates on new asset purchases, and the change in theamortization schedules of mortgage-backed securities due to higherthan anticipated pre-payments. Overall Revenue for the firstquarter 2002 increased 10.2% when compared to the first quarter of2001.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
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| Total Benefits and Expenseswere 12.4% higher in the first quarter of 2002 when compared to thesame quarter of 2001 primarily due to higher premium production inpre-need sales and higher claims overall. After providing forfederal income taxes, the Company's Net Income (before cumulativeeffect of change in accounting principle) was $650,756 withEarnings per share of $0.57 for the first three months of 2002 ascompared to Net Income of $692,176 and Earnings per share of $0.60for the same period in 2001. Separate from operating earnings, SFASNo. 142 "Goodwill and Other Intangible Assets" was adopted duringthe first quarter of 2002. This resulted in an after-tax charge of$970,862, related to the impairment of goodwill.  The impairedgoodwill was associated with the 1981 and 1982 acquisitions ofInvestors Heritage Life Insurance Company of the South andCommercial Travelers Life Insurance Company, respectively. Thecharge is reported separately in our Consolidated Statements ofIncome as a "Cumulative Effect of Change in Accounting Principle".After the charge, our goodwill balance at March 31, 2002 is $-0-.Under the new accounting standards, there will no longer be acharge for normal amortization of goodwill. During the firstquarter 2002 the Company's Board of Directors declared a dividendof $0.38 per share to be paid April 5, 2002, to shareholders ofrecord on March 22, 2002. |
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| **BusinessSegments**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
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| Management internally evaluatesthe performance of Investors Heritage operations by the followingbusiness segments:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
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| Preneed & Burial Productsinclude both life and annuity products sold by funeral directors oraffiliated agents to fund prearranged funerals. Revenues for thissegment were 11.8% higher for the first quarter of 2002 whencompared to the same period of 2001. The increase is due to asignificant increase in sales from Investors Heritage's Legacy 2000Series of Preneed Products used in the preneed funeral market.Pre-Tax Income (Loss) from Operations for the first quarter 2002was $(72,352) compared to $453,310 for the same period for 2001.The decrease in 2002 is due primarily to higher mortality, reducedinvestment income due to lower interest rates on investments infixed maturities and higher state premium taxes due to the increasein sales. Investors Heritage plans to continue its expansion ofterritory and recruitment of agents in the Preneed and Burialinsurance market.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
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| Traditional & UniversalLife Products include traditional life and group life insuranceproducts, annuities (primarily qualified) and universal lifeproducts. Revenues for this segment were 0.7% higher for the firstquarter of 2002 when compared to the first quarter of 2001. Theincrease in revenues is primarily from sales of two new terminsurance products developed in 2001. Pre-Tax Income fromOperations for the first quarter 2002 was 31.0% higher than thefirst quarter of 2001 primarily because of increased sales andbetter mortality.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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| Credit Insurance Products andAdministrative Services include the marketing and administration ofcredit life and credit accident & health insurance products.Revenues for 2002 were 52.6% lower for the first quarter whencompared to the previous quarter and Pre-Tax Income (Loss) fromOperations was ($4,545) for the first quarter of 2002 compared to$45,939 for the first quarter of 2001, primarily due to thereduction in the need for credit insurance because of a decrease inconsumer loan demand. With less production there was a relatedreduction in service fee income for this segment. All of therelated underwriting risk currently produced is being reinsured100% with highly-rated life companies.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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| Corporate & Other consistsof corporate accounts measured primarily by stockholders' paid-incapital, contributed surplus, earned surplus, property andequipment, and other minor business lines which include groupannuities and group and individual accident and health products.Revenues were 36.8% higher and Pre-Tax Income from Operations was112.4% higher for the first quarter of 2002 when compared to thefirst quarter 2001. The increases are primarily due to realizedgains from the sale of investments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
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| **Federal IncomeTaxes**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
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| Current taxes are providedbased on estimates of the projected effective annual tax rate.Deferred taxes reflect the net tax effects of temporary differencesbetween the carrying amounts of assets and liabilities forfinancial reporting purposes and the amounts used for income taxpurposes. The effective tax rate was 21.0% at March 31, 2002compared to 35.2% for March 31, 2001. The decrease in the effectivetax rate is due primarily to the increased benefit of the smalllife insurance company deduction resulting from a decrease in netincome.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
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| **Forward LookingInformation**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
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| The Company cautions readersregarding certain forward-looking statements contained in thisreport and in any other statements made by, or on behalf of, theCompany, whether or not in future filings with the Securities andExchange Commission. Forward-looking statements are statements notbased on historical information and which relate to futureoperations, strategies, financial results, or other developments.Statements using verbs such as "expect", "anticipate", "believe" orwords of similar import generally involve forward-lookingstatements. Without limiting the foregoing, forward-lookingstatements include statements which represent the Company's beliefsconcerning future levels of sales and redemptions of InvestorsHeritage's products, investment spreads and yields, or the earningsand profitability of the Company's or Investors Heritage'sactivities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
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| Forward-looking statements arenecessarily based on estimates and assumptions that are inherentlysubject to significant business, economic and competitiveuncertainties and contingencies, many of which are beyond theCompany's control and many of which are subject to change. Theseuncertainties and contingencies could cause actual results todiffer materially from those expressed in any forward-lookingstatements made by, or on behalf of, the Company. Whether or notactual results differ materially from forward-looking statementsmay depend on numerous foreseeable and unforeseeable factors anddevelopments. Some of these may be national in scope, such asgeneral economic conditions, changes in tax law and changes ininterest rates. Some may be related to the insurance industrygenerally, such as pricing competition, regulatory developments,industry consolidation and the effects of competition in theinsurance business from other insurance companies and otherfinancial institutions operating in the Company's market area andelsewhere. Others may relate to the Company specifically, such ascredit, volatility and other risks associated with the Company'sinvestment portfolio. The Company cautions that such factors arenot exclusive. The Company disclaims any obligation to updateforward-looking information.                                                                                      |
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| **ITEM 3. Quantitative andQualitative Disclosures about Market Risk.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
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| There have been no significantchanges in the Company's market risks since December 31, 2001.Refer to the Annual Report to the stockholders for the year endedDecember 31, 2001 for reference purposes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

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**Part II -Other Information**
| **Item 1.** | **LegalProceedings**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|-------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
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|             | The Company is not involved inany legal proceedings. From time to time Investors Heritage isinvolved in litigation relating to claims arising out of itsoperations in the normal course of business. As of May 9, 2002,Investors Heritage is not a party to any legal proceedings, theadverse outcome of which, in management's opinion, individually orin the aggregate, would have a material adverse effect on InvestorsHeritage's or the Company's financial condition or results ofoperations. |
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| **Item 2.** | **Changes in Securities andUse of Proceeds**                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|             | None                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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| **Item 3.** | **Defaults Upon SeniorSecurities**                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
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|             | None                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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| **Item 4.** | **Submission of Matters to aVote of Security Holders**                                                                                                                                                                                                                                                                                                                                                                                                                                              |
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|             | None                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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| **Item 5.** | **OtherInformation**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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|             | On May 9, 2002, at the AnnualMeeting of Shareholders, the Company was authorized to issue8,000,000 shares of a new class of undesignated, non-votingpreferred stock.  The Board of Directors will establish anddesignate different series within the new class of preferred stockand fix and determine the relative rights and preferences of eachnew series. To date no shares have been issued and the Company hasno current plans to issue such shares.                                     |
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| **Item 6.** | **Exhibits and Reports on Form8-K**                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|             | a) Exhibits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|             |      No exhibits were filedfor the quarter ended March 31, 2002.                                                                                                                                                                                                                                                                                                                                                                                                           |
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|             | b) Reports on Form8-K                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|             |      No reports on Form 8-Kwere filed for the quarter ended March 31, 2002.                                                                                                                                                                                                                                                                                                                                                                                                |
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|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **SIGNATURES**                                                                                                                                                                            |
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| Pursuant to the requirements ofthe Securities and Exchange Act of 1934, the registrant has dulycaused this report to be signed on its behalf by the undersignedthereunto duly authorized. |
|                    | KENTUCKY INVESTORS,INC.               |
|--------------------|---------------------------------------|
|                    |                                       |
|                    | /s/ Harry Lee WaterfieldII            |
|                    | BY: HARRY LEE WATERFIELD II,PRESIDENT |
|                    |                                       |
| DATE: May 14, 2002 |                                       |
|                    | /s/ Jimmy R. McIver                   |
|                    | BY: JIMMY R. MCIVER,TREASURER         |
| DATE: May 14, 2002 |                                       |