UNITED
			STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, DC   20549FORM 10-QQUARTERLY REPORTPursuant to Section 13 or 15(d) of the Securities Exchange Act of
			1934For
			the Quarterly Period Ended March 31, 2007Commission File Number: 0-1999KENTUCKY INVESTORS, INC.(Exact
			Name of Registrant as Specified in Charter)KENTUCKY(State
			or Other Jurisdiction of Incorporation or Organization)61-6030333(IRS
			Employer Identification No.)200
			Capital Avenue, P. O. Box 717Frankfort, Kentucky40602(Address of Principal Executive Offices)Registrant's Telephone Number - (502) 223-2361Securities registered pursuant to Section 13(g) of the Act:Common Capital Stock par value $1.00 per share(Title
			of Class)Number of outstanding shares as of March 31, 2007 - 1,113,319.720Indicate by check
			mark whether the registrant (1) has filed all reports required to be
			filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
			during the preceding 12 months (or for such shorter period that the
			registrant was required to file such reports), and (2) has been
			subject to such filing requirements for the past 90 days. Yes X NoIndicate by check
			mark whether the registrant is a large accelerated filer, an
			accelerated filer, or a non-accelerated filer. See definition of
			"accelerated filer and large accelerated filer" in Rule 12b-2 of the
			Exchange Act. Large accelerated filer Accelerated filer
			Non-accelerated filer XIndicate by check mark whether the registrant
			is a shell company (as defined in Rule 12b-2 of the Exchange Act).
			Yes  No X




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CONTENTS





PART I --
FINANCIAL INFORMATION

PageITEM 1.
			Condensed Consolidated Financial Statements
			3ITEM 2.
			Management's Discussion and Analysis of
			Financial Condition and Results of Operations
			11ITEM 3.
			Quantitative and Qualitative Disclosures about
			Market Risk
			17ITEM 4.
			Controls and Procedures
			17




PART II -- OTHER
INFORMATION

ITEM 1.
			Legal Proceedings
			18ITEM1A.
			Risk Factors
			18ITEM 2.
			Unregistered Sales of Equity Securities and Use
			of Proceeds
			18ITEM 3.
			Defaults Upon Senior Securities
			18ITEM 4.
			Submission of Matters to a Vote of Security
			Holders
			18ITEM 5.
			Other Information
			18ITEM 6.
			Exhibits
			18SIGNATURES
			
			19EXHIBIT 31.1
			
			20EXHIBIT 31.2
			
			22EXHIBIT 32
			
			24




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PART I -- FINANCIAL INFORMATIONITEM 1. Condensed Consolidated
			Financial Statements


KENTUCKY INVESTORS, INC.Condensed Consolidated Balance Sheets (Unaudited)




March 31, 2007
			December 31, 2006AssetsInvestmentsSecurities available for sale, at fair
			value:Fixed maturities (amortized cost:$281,758,124 and $281,277,592)
			$285,256,731
			$284,005,322Equity securities (cost:$3,150,807 and $3,141,053)
			3,774,146
			3,790,179Mortgage loans on real estate
			25,686,853
			24,629,380Policy loans
			7,216,244
			7,283,917Other long term investments
			1,615,253
			1,438,921Short term investments
			390,000
			390,000Total investments
			323,939,227
			321,537,719Cash and cash equivalents
			1,450,417
			1,776,491Accrued investment income
			3,618,003
			4,564,086Due premiums
			3,897,363
			3,854,233Deferred acquisition costs
			21,270,075
			21,494,408Present value of future profits
			185,073
			207,969Leased property under capital leases
			294,699
			350,093Property and equipment
			1,701,357
			1,666,402Collateral on securities loaned
			12,367,327
			-Cash value of company-owned life insurance
			6,143,009
			6,117,814Other assets
			280,872
			243,912Amounts recoverable from reinsurers
			52,622,971
			53,415,921Total assets
			$427,770,393
			$415,229,048




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March 31, 2007
			December 31, 2006Liabilities and stockholders' equityLiabilitiesPolicy liabilitiesBenefit reserves
			$340,580,662
			$341,173,043Unearned premium reserves
			13,074,628
			13,525,803Policy claims
			1,505,832
			1,567,922Liability for deposit-type contracts
			2,624,177
			2,652,003Reserves for dividends andendowments and other
			621,935
			601,815Total policy liabilities
			358,407,234
			359,520,586Federal income taxes
			4,074,883
			3,730,671Obligations under capital leases
			297,621
			349,166Notes payable
			5,717,981
			5,725,751Obligations to return collateral undersecurities loan agreement
			12,367,327
			-Accrued pension liability
			2,740,402
			2,847,193Other liabilities
			2,640,507
			1,885,288Total liabilities
			$386,245,955
			$374,058,655Stockholders' equityCommon stock (shares issued:1,113,320 and 1,113,104)
			$    1,113,320
			$    1,113,104Paid-in surplus
			8,605,652
			8,603,902Accumulated other comprehensiveincome (loss)
			348,538
			(114,520)Retained earnings
			31,456,928
			31,567,907Total stockholders' equity
			$  41,524,438
			$  41,170,393Total liabilities and stockholders'equity
			$427,770,393
			$415,229,048




See accompanying notes.



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KENTUCKY INVESTORS, INC.Condensed Consolidated Income Statements (Unaudited)




Three Months Ended March 312007
			2006RevenuePremiums and other
			considerations
			$10,992,072
			$12,086,769Premiums ceded
			(2,750,109)
			(3,039,731)Net premiums earned
			8,241,963
			9,047,038Investment income, net of
			related expenses
			4,527,399
			4,499,829Realized losses on
			investments, net
			(541)
			(129,717)Other income
			288,077
			247,898Total revenue
			13,056,898
			13,665,048Benefits and expensesDeath and other benefits
			8,878,261
			8,923,277Guaranteed annual endowments
			146,606
			155,217Dividends to policyholders
			133,359
			143,117Increase in benefit reservesand unearned premiums
			306,931
			1,372,561Acquisition costs deferred
			(1,251,924)
			(1,259,980)Amortization of deferred
			acquisition costs
			1,421,663
			1,466,667Commissions
			525,788
			598,415Other insurance expenses
			2,478,295
			2,331,563Total benefits and
			expenses
			12,638,979
			13,730,837Income (loss) before federal
			income taxes
			417,919
			(65,789)Provision (benefit) for federal
			income taxes:Current
			6,906
			75,012Deferred
			67,115
			(86,907)Total provision (benefit)
			forfederal income taxes
			74,021
			(11,895)Net income (loss)
			$     343,898
			$      (53,894)Basic and diluted earnings
			(loss) per share
			$           0.31
			$          (0.05)Dividends per share
			$           0.38
			$           0.38See accompanying notes.




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KENTUCKY INVESTORS, INC.Condensed Consolidated Statements of Stockholders'
			Equity (Unaudited)




|                                           |  |                |  |                |  | Accumulated          |  |               |  |                  
|------------------------------------------ |  | -------------- |  | -------------- |  | -------------------- |  | ------------- |  | -----------------
|                                           |  |                |  |                |  | Other                |  |               |  | Total            
|                                           |  | Common         |  | Paid-in        |  | Comprehensive        |  | Retained      |  | Stockholders'    
|                                           |  | Stock          |  | Surplus        |  | Income (Loss)        |  | Earnings      |  | Equity           
|BALANCE, JANUARY 1, 2006                   |  | $    1,104,773 |  | $    8,578,978 |  | $        3,954,841   |  | $  30,624,112 |  | $      44,262,704
|Comprehensive loss:                        |  |                |  |                |  |                      |  |               |  |                  
|Net loss                                   |  | -              |  | -              |  | -                    |  | (53,894)      |  | (53,894)         
|Change in net unrealized appreciation      |  |                |  |                |  |                      |  |               |  |                  
|on available-for-sale securities           |  | -              |  | -              |  | (3,821,296)          |  | -             |  | (3,821,296)      
|                                           |  |                |  |                |  |                      |  |               |  | (3,875,190)      
|Cash dividends paid ($0.38 per share)      |  | -              |  | -              |  | -                    |  | (522,350)     |  | (522,350)        
|BALANCE, MARCH 31, 2006                    |  | $    1,104,773 |  | $    8,578,978 |  | $           133,545  |  | $  30,047,868 |  | $      39,865,164
|                                           |  |                |  |                |  |                      |  |               |  |                  
|BALANCE, JANUARY 1, 2007                   |  | $    1,113,104 |  | $    8,603,902 |  | $          (114,520) |  | $  31,567,907 |  | $      41,170,393
|Comprehensive income:                      |  |                |  |                |  |                      |  |               |  |                  
|Net income                                 |  | -              |  | -              |  | -                    |  | 343,898       |  | 343,898          
|Change in net unrealized appreciation      |  |                |  |                |  |                      |  |               |  |                  
|on available-for-sale securities           |  | -              |  | -              |  | 435,509              |  | -             |  | 435,509          
|Amortization of unrecognized net loss on   |  |                |  |                |  |                      |  |               |  |                  
|pension plan, net of tax                   |  | -              |  | -              |  | 29,536               |  | -             |  | 29,536           
|Change in fair value of hedging instrument |  | -              |  | -              |  | (1,987)              |  | -             |  | (1,987)          
|Total comprehensive income                 |  |                |  |                |  |                      |  |               |  | 806,956          
|Cash dividends paid ($0.38 per share)      |  | -              |  | -              |  | -                    |  | (458,852)     |  | (458,852)        
|Issuances  of common stock, net            |  | 216            |  | 1,750          |  | -                    |  | 3,975         |  | 5,941            
|BALANCE, MARCH 31, 2007                    |  | $  1,113,320   |  | $    8,605,652 |  | $        348,538     |  | $  31,456,928 |  | $     41,524,438 



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KENTUCKY INVESTORS, INC.Condensed Consolidated Statements of Cash Flows
			(Unaudited)Three Months Ended March 312007
			2006Net cash provided by operating
			activities
			$  1,769,597
			$   2,798,257Investing activitiesSecurities
			available-for-sale:Purchases
			(4,510,514)
			(20,965,494)Sales and maturities
			3,926,150
			18,729,798Other investments:Cost of acquisition
			(1,662,861)
			(265,270)Sales and maturities
			496,729
			392,478Net additions to property and
			equipment
			(77,648)
			(99,233)Net cash used in investing
			activities
			(1,828,144)
			(2,207,721)Financing activitiesReceipts from universal life
			policiescredited to policyholder
			accountbalances
			2,467,482
			2,527,663Return of policyholder
			account balanceson universal life policies
			(2,733,180)
			(2,618,281)Payments on notes payable
			(1,196,709)
			(2,446,866)Proceeds from notes payable
			1,188,939
			1,985,504Issuances of common stock
			5,941
			-Net cash used in financing
			activities
			(267,527)
			(551,980)Increase (decrease) in cash andcash equivalents
			(326,074)
			38,556Cash and cash equivalents at
			beginning of period
			1,776,491
			1,994,032Cash and cash equivalents at end
			of period
			$  1,450,417
			$    2,032,588See accompanying notes.




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KENTUCKY
INVESTORS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2007

(Unaudited)





NOTE A - Nature of Operations:Kentucky Investors, Inc. is the holding
company of Investors Heritage Life Insurance Company; Investors Heritage
Printing, Inc., a printing company; Investors Heritage Financial Services Group,
Inc., an insurance marketing company; and is the sole member of At Need Funding,
LLC, a limited liability company that provides advance funding of funerals in
exchange for the irrevocable assignment of life insurance policies from other
nonaffiliated companies. These entities are collectively hereinafter referred to
as the "Company". Approximately 99% of Kentucky Investors consolidated revenue
is generated by Investors Heritage Life.



Our operations involve the sale and administration of various insurance and
annuity products, including, but not limited to, participating and
non-participating whole life, limited pay life, universal life, annuity
contracts, credit life, credit accident and health and group insurance policies.
The principal markets for the Company's products are in the commonwealths of
Kentucky and Virginia, and the states of North Carolina, South Carolina, Ohio,
Indiana, Florida, Tennessee, Georgia, and Michigan.



NOTE B - Basis of Presentation:The accompanying unaudited condensed
consolidated financial statements have been prepared in accordance with U.S.
generally accepted accounting principles for interim financial information and
the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly,
they do not include all of the information and footnotes required by U.S.
generally accepted accounting principles for complete financial statements. In
the opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been included.
Operating results for the three months ended March 31, 2007 are not necessarily
indicative of the results that may be expected for the year ending December 31,
2007. For further information, refer to the consolidated financial statements
and footnotes thereto for the year ended December 31, 2006, as included in our
Annual Report on Form 10-K.



The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.



NOTE C - Earnings per Share and Stock-Based Compensation:Earnings per
share of common stock were computed based on the weighted average number of
common shares outstanding during each period. The weighted average number of
shares outstanding for the three months ended March 31, 2007 and 2006 were
1,113,257 and 1,104,773, respectively.



We account for our stock-based incentive program under Statement of Financial
Accounting Standard ("SFAS") No. 123(R), "Share-Based Payment," which
requires all share-based payments to employees to be recognized as compensation
expense in the consolidated income statement. We adopted the provisions of SFAS
No. 123(R) using the modified prospective method in which compensation expense
is recognized based on the requirements of SFAS No. 123, "Accounting for
Stock-Based Compensation," for all awards granted to employees prior to
January 1, 2006. Under this method, our stock-based compensation is reported in
the balance sheets as a liability based on the intrinsic value of the
compensation, and compensation expense is measured as the change in intrinsic
value.



The Company's only outstanding stock options and stock appreciation rights were
issued in 1999. Pursuant to our stock option and stock appreciation rights plan,
there were 61,125 outstanding options, having an exercise price of $23.00 per
share as of March 31, 2007 and 2006.  We reduced compensation expense by $88,631
for the three month period ended March 31, 2007 and recognized $6,113 of
compensation expense for the three month period ended March 31, 2006 relative to
the outstanding options, based on changes in the market value of the Company's
stock compared to the exercise price of the options as of those dates.



NOTE D - Segment Data:We operate in four segments as shown in the
following table. All segments include both individual and group insurance.
Identifiable revenues and expenses are assigned directly to the applicable
segment. Net investment income is generally allocated to the insurance and the
corporate segments in proportion to policy liabilities and stockholders' equity,
respectively. Corporate and Other segment results include results for the parent
company, Investors Heritage Printing, Inc., Investors Heritage Financial
Services Group, Inc. and At Need Funding LLC, after elimination of intercompany
amounts.



Three Months EndedMarch 31, 2007
			March 31, 2006Revenue:Preneed and Burial Products
			$9,762,061
			$10,528,265Traditional and Universal
			Life Products
			2,857,413
			2,872,553Credit Insurance Products
			andAdministrative Services
			53,937
			36,996Corporate and Other
			_    383,487
			_227,234$13,056,898
			$13,665,048Income (loss) from operations
			before provision forfederal income taxes:Preneed and Burial Products
			$   (140,677)
			$     (134,223)Traditional and Universal Life Products
			241,051
			53,247Credit Insurance Products
			andAdministrative Services
			27,182
			27,774Corporate and Other
			290,363
			(12,587)$      417,919
			$      (65,789)




NOTE E -
Federal Income Taxes:The provision (benefit) for federal income taxes is
based on the estimated effective annual tax rate. Deferred taxes reflect the net
tax effects of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for income tax
purposes. At March 31, 2007 and December 31, 2006, the Company's deferred tax
liability as recorded on the balance sheet was $4,121,930 and $3,784,625,
respectively. Income (loss) before federal income taxes differs from taxable
income principally due to the dividends-received deduction, the 404(k) dividend
deduction and the small life insurance company tax deduction.



The Financial Accounting Standards
Board ("FASB") issued Interpretation No. 48, "Accounting for Uncertainty in
Income Taxes, an interpretation of FASB Statement No. 109" ("FIN 48"), in
June 2006. FIN 48 clarifies the accounting for uncertainty in income taxes by
defining criteria that a tax position on an individual matter must meet before
that position is recognized in the financial statements.  Additionally, FIN 48
provides guidance on measurement, derecognition, classification, interest and
penalties, interim period accounting, disclosures and transition. We adopted the
provisions of FIN 48 on January 1, 2007. The adoption of FIN 48 did not have a
material impact on our financial condition or results of operations.



We have no known uncertain tax
benefits within our provision for income taxes. In addition, we do not believe
the Company would be subject to any penalties or interest relative to any open
tax years and, therefore, have not accrued any such amounts. We file U.S.
federal income tax returns and income tax returns in various state
jurisdictions. Our 2003, 2004 and 2005 U.S. federal tax years remain subject to
income tax examination by tax authorities. We classify any interest and
penalties (if applicable) as income tax expense in the financial statements.



NOTE F - Employee Benefit Plan:We sponsor a noncontributory defined
benefit retirement plan which covers substantially all employees. Benefits are
based on years of service and the highest consecutive 60 months average earnings
within the last 120 months of credited service. Benefits are funded based on
actuarially-determined amounts.



The following table provides the components of the net periodic benefit cost:



Three Months EndedMarch 31, 2007
			March 31, 2006Service cost
			$   86,075
			$   77,688Interest cost
			183,238
			173,947Expected return on plan assets
			(212,874)
			(182,198)Amortization of net actuarial loss
			44,752
			54,200Net periodic benefit cost
			$ 101,191
			$ 123,637




We previously disclosed in our financial statements for the year ended December
31, 2006 that we expected to contribute $652,920 to our pension plan in 2007. As
of March 31, 2007, $163,230 had been contributed. We presently anticipate
contributing an additional $489,690 to fund our pension plan in 2007.



NOTE G - Investments:We participate in a securities lending program,
primarily for investment yield enhancement purposes, with third parties, mostly
large brokerage firms. Securities loaned are treated as financing arrangements
and the unrestricted collateral received is recorded as an asset, with an
offsetting liability recorded for our obligation to return the collateral. We
obtain collateral in an amount equal to 102% of the fair value of domestic
securities loaned, monitor the market value of securities loaned on a daily
basis and obtain additional collateral as necessary. At March 31, 2007, fixed
income securities with a carrying value of $12,032,618 were on loan under this
agreement, with associated collateral held of $12,367,327. At December 31, 2006,
there were no securities on loan under this agreement. Income earned relative to
this program was $2,505 and $6,750, respectively, for the three month periods
ended March 31, 2007 and 2006.



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



General



Kentucky Investors is incorporated under the laws of the Commonwealth of
Kentucky and wholly owns Investors Heritage Life Insurance Company, a life
insurance company also incorporated under the laws of the Commonwealth of
Kentucky. Kentucky Investors also wholly owns Investors Heritage Financial
Services Group, Inc., a Kentucky insurance marketing company, Investors Heritage
Printing, Inc., a Kentucky printing company that provides printing to Investors
Heritage Life and other unaffiliated parties, and is the sole member of At Need
Funding, LLC, a Kentucky limited liability company that provides advance funding
of funerals in exchange for the irrevocable assignment of life insurance
policies from other nonaffiliated companies.



Investors Heritage Life offers a
full line of life insurance products including, but not limited to, whole life,
term life, single premium life, multi-pay life and annuities. Investors Heritage
Life's primary lines of business are insurance policies and annuities utilized
to fund preneed funeral contracts, credit life and credit disability insurance,
and term life and reducing term life sold through financial institutions.



The Legacy Protector and Legacy Preferred life insurance and annuity products
are marketed exclusively in conjunction with pre-arranged funerals. These
products allow for competitive commissions and death benefit growth to provide
adequate proceeds to cover funeral expenses while allowing individuals to
purchase affordable benefits that meet their personal needs. Underwritten and
guaranteed issue options are available.



The Heritage Final Expense product is sold in the final expense markets. It is
reinsured on an 80% quota share basis. This reinsurance arrangement has helped
to reduce first year statutory surplus strain associated with new sales, as well
as provide a stable profit stream for the future.



Investors Heritage Life also provides term insurance products, both on a
decreasing and a level basis. The Term to 95 product provides level coverage.
Our decreasing term policy is primarily sold through financial institutions.



While we continue to expand the operations of Investors Heritage Financial,
Investors Heritage Printing and At Need Funding, less than 1% of our
consolidated revenues were generated by those subsidiaries. As anticipated,
approximately 10% of Investors Heritage Financial's revenues for the three month
period ended March 31, 2007 were derived from the sale of Investors Heritage
Life's credit insurance products. During the first three months of 2007,
Kentucky Investors received dividends from Investors Heritage Financial totaling
$75,000 and received distributions from At Need Funding of $10,000. We
anticipate further dividend payments from Investors Heritage Financial and
distributions from At Need Funding during the remainder of 2007.



Our primary uses of cash are
operating expenses, debt service and dividend payments, and our principal
sources of cash are the dividends paid to us by Investors Heritage Life and
Investors Heritage Financial. Investors Heritage Life's principal sources of
cash are from the sale of life insurance policies, administrative service fees
and investment income, including realized gains (losses), less interest credited
and benefits to policyholders and expenses.



Critical Accounting Policies
and Estimates



The discussion and analysis of our financial condition and results of operations
is based on our consolidated financial statements, which have been prepared in
accordance with U.S. generally accepted accounting principles. Preparation of
these financial statements requires us to make estimates and judgments that
affect the reported amounts of assets, liabilities, revenues and expenses. On a
continuing basis, we evaluate our estimates, including those related to
investments, deferred acquisition costs, present value of future profits, policy
liabilities, income taxes, accrued pension liabilities, regulatory requirements,
contingencies and litigation. We base such estimates on historical experience
and other assumptions believed to be reasonable under the circumstances, the
results of which form the basis for making judgments about the carrying values
of assets and liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates under different assumptions or
conditions. We believe the following accounting policies, judgments and
estimates are the most critical to the preparation of our consolidated financial
statements.



Investments
in Fixed Maturities, Equity Securities and Mortgage Loans



We hold fixed maturities and equity interests in a variety of companies.
Additionally, we originate, underwrite and manage mortgage loans. We
continuously evaluate all of our investments based on current economic
conditions, credit loss experience and other developments. We evaluate the
difference between the cost/amortized cost and estimated fair value of our
investments to determine whether any decline in value is other-than-temporary in
nature. This determination involves a degree of uncertainty. If a decline in the
fair value of a security is determined to be temporary, the decline is recorded
as an unrealized loss in stockholders' equity. If a decline in a security's fair
value is considered to be other-than-temporary, the security is written down to
the estimated fair value with a corresponding realized loss recognized in the
consolidated income statement.



The assessment of whether a decline in fair value is considered temporary or
other-than-temporary includes our judgment as to the financial position and
future prospects of the entity issuing the security. It is not possible to
accurately predict when it may be determined that a specific security will
become impaired. Future adverse changes in market conditions, poor operating
results of underlying investments and defaults on mortgage loan payments could
result in losses or an inability to recover the current carrying value of the
investments, thereby possibly requiring an impairment charge in the future.
Likewise, a change in our ability or intent to hold temporarily impaired
securities until maturity or recovery in value could result in a future
impairment charge.



Deferred
Acquisition Costs



At March 31, 2007, the balance of our deferred acquisition costs was
approximately $21,270,000 compared to $21,494,000 at December 31, 2006. The
recovery of these costs is dependent on the future profitability of the related
business. Each reporting period, we evaluate the recoverability of the
unamortized balance of the deferred acquisition costs. We consider estimated
future gross profits or future premiums, expected mortality or morbidity,
interest earned and credited rates, persistency and expenses in determining
whether the balance is recoverable. If we determine a portion of the unamortized
balance is not recoverable, it is immediately charged to amortization expense.
The assumptions we use to amortize and evaluate the recoverability of the
deferred acquisition costs involve significant judgment. A revision to these
assumptions may impact future financial results.



Policy
Liabilities



Establishing liabilities for our long-duration insurance contracts requires
various assumptions, including policyholder persistency, mortality rates,
investment yields, discretionary benefit increases, new business pricing, and
operating expense levels. We evaluate historical experience for these factors
when assessing the need for changing current assumptions. However, since many of
these factors are interdependent and subject to short-term volatility during the
long-duration contract period, substantial estimates and judgments are required.
Actual experience may emerge differently from that assumed. Any such difference
would be recognized in the current period's consolidated income statement.



Income Taxes



We evaluate our deferred income tax assets, which partially offset our deferred
tax liabilities, for any necessary valuation allowances. In doing so, we
consider our ability and potential for recovering income taxes associated with
such assets, which involve significant judgment. Revisions to the assumptions
associated with any necessary valuation allowances would be recognized in the
financial statements in the period in which such revisions are made.



Accrued Pension Liabilities



We maintain a defined benefit retirement plan on behalf of our employees.
Measurement of the future benefit obligations associated with this plan involves
significant judgment, particularly in regard to the expected long-term rate of
return on plan assets, rate of compensation increases and the current discount
rate used to calculate the present value of future obligations. Changes in these
assumptions can significantly impact the accrued pension liability required to
be recorded in the financial statements.



Investments,
Liquidity and Capital Resources



Investments



Investors Heritage Life has
maintained a sound, conservative investment strategy. At March 31, 2007, 88.0%
of invested assets consisted of fixed income public bonds compared to 88.3% at
December 31, 2006. Fixed income assets are managed by Conning Asset Management
Company, an independent portfolio manager.



We recognized no other-than-temporary impairment losses during the three months
ended March 31, 2007 or the corresponding period in 2006. We believe that we
will recover the cost basis in the securities held with unrealized losses as we
have both the intent and ability to hold the securities until they mature or
recover in value.



We participate in a securities lending program, primarily for investment yield
enhancement purposes, with third parties, mostly large brokerage firms.
Securities loaned are treated as financing arrangements and the unrestricted
collateral received is recorded as an asset, with an offsetting liability
recorded for our obligation to return the collateral.



Additionally, Investors Heritage
Life engages in commercial and residential mortgage lending with approximately
98.2% of these investments being in commercial properties. All mortgage loans
are originated in-house and all loans are secured by first mortgages on the real
estate. At March 31, 2007, 7.9% of invested assets consisted of mortgage loans
compared to 7.7% at December 31, 2006. We anticipate funding several new
mortgage loan investments during the remainder of 2007 to maintain a similar to
slightly higher percentage of mortgage loans to total invested assets. As of
March 31, 2007, Investors Heritage Life had no non-performing mortgage loans,
which would include loans past due 90 days or more, loans in process of
foreclosure, restructured loans and real estate acquired through foreclosure.



Liquidity and Capital Resources



Premiums, which include mortality and expense charges, and investment income are
Investors Heritage Life's primary sources of cash flow used to meet short-term
and long-term cash requirements.



Investors Heritage Life's short-term obligations consist primarily of
policyholder benefits and operating expenses. Investors Heritage Life has
historically been able to meet these obligations out of operating cash, premiums
and investment income.



Investors Heritage Life's principal long-term obligations are fixed contractual
obligations incurred in the sale of its life insurance products. The premiums
charged for these products are based on conservative and actuarially sound
assumptions as to mortality, persistency and interest. We believe these
assumptions will produce revenues sufficient to meet our future contractual
benefit obligations and operating expenses, and provide an adequate profit
margin.



Investors Heritage Life's conservative approach in the product development area
and the strength and stability of its fixed income and mortgage loan portfolios
provide adequate liquidity both in the short-term and the long-term. At March
31, 2007 and December 31, 2006, Investors Heritage Life's fixed income
investments were 100% investment grade as rated by Standard & Poor's. None of
Investors Heritage Life's fixed income assets are in default and there has been
no material change in the distribution of its fixed income portfolio.



Kentucky Investors principal
sources of cash flow are rental income and dividends from its subsidiaries.
Kentucky Investors principal long-term obligations are payments on long-term
debt.



We assess our compliance with prescribed debt covenant requirements as outlined
in the terms of each debt agreement at least annually, if not otherwise required
in the debt agreement.  Management has assessed our position and as of March 31,
2007, we are in compliance with all debt covenant requirements.



We are not aware of any commitments or unusual events that could materially
affect our liquidity or capital resources. We have the option to prepay certain
notes payable at our discretion prior to their maturity dates.



We will continue to explore
various opportunities including mergers and acquisitions and purchasing blocks
of business from other companies, which may dictate a need for either long-term
or short-term debt.  There are no restrictions as to use of funds except the
restriction on Investors Heritage Life as to the payment of cash dividends to
Kentucky Investors.



Results of
Operations



Overview



Premiums earned (net of reinsurance) were $8,241,963 for the first quarter of
2007 (a decrease of 8.9% compared to the first quarter of 2006). The decrease
was primarily due to lower sales in the preneed and burial segment. Net
investment income was $4,527,399 for the first quarter of 2007 (an increase of
0.6% compared to the first quarter of 2006). Total revenue was $13,056,898 for
the first quarter of 2007 (a decrease of 4.5% compared to the first quarter of
2006). This decrease is primarily due to the previously described lower sales in
the pre-need and burial segment.



Total benefits and expenses were
$12,638,979 in the first quarter of 2007 (a decrease of 8.0% compared to the
first quarter of 2006). The decrease in benefits and expenses is primarily due
to lower preneed production as well as improved mortality in the preneed and
traditional and universal segments in comparison to the prior year. After
providing for federal income taxes, our net income was $343,898 with earnings
per share of $0.31 for the first quarter of 2007 as compared to a net loss of
($53,894) and a loss per share of ($0.05) for the first quarter of 2006.



A dividend of $0.38 per share was paid April 7, 2007, to shareholders of record
on March 23, 2007.



Business Segments



We internally evaluate the performance of our operations by the following
business segments:



Preneed and Burial Products include both life and annuity products sold by
funeral directors or affiliated agents to fund prearranged funerals. Revenues
for this segment were $9,762,061 for the first quarter of 2007 (a decrease of
7.3% compared to the first quarter of 2006). The decrease for the first quarter
of 2007 is due primarily to decreased premium production from lower sales of the
preneed and burial products. Pre-tax income (loss) from operations was
($140,677) for the first quarter of 2007 compared to ($134,223) for the same
period for 2006. The decrease in pre-tax income was primarily driven by the
aforementioned lower production, which was somewhat offset by improved mortality
experience within the segment.



Traditional and Universal Life
Products include traditional life and group life insurance products, annuities
(primarily qualified) and universal life products. Revenues for this segment
were $2,857,413 for the first quarter of 2007 (a decrease of 0.5% compared to
the first quarter of 2006). Revenues on this segment are primarily derived from
the sale of term insurance products through banks. Pre-tax income from
operations was $241,051 for the first quarter of 2007 compared to $53,247 for
the same period for 2006.  The increase in pre-tax income was primarily due to
improvement in experienced mortality particularly in comparison to the prior
year.



Credit Insurance Products and
Administrative Services include the marketing and administration of credit life
and credit accident and health insurance products. All of the related
underwriting risk currently produced within the segment is being reinsured 100%
with highly-rated life companies. Accordingly, revenue is generated primarily
from servicing and administering the credit business for our reinsurers. Because
the revenue is fee-based, segment performance is in direct relation to new and
existing earned premium production.  Revenues for this segment were $53,937 for
the first quarter of 2007 compared to $36,996 for the first quarter of 2006.
Pre-tax income from operations was $27,182 for the first quarter of 2007
compared to $27,774 for the same period for 2006.



Corporate and Other consists of corporate accounts measured primarily by
stockholders' paid-in capital, contributed surplus, earned surplus, property and
equipment, and other minor business lines which include group annuities and
group and individual accident and health products. Revenues for this segment
were $383,487 for the first quarter of 2007 (an increase of 68.8% compared to
the first quarter of 2006). Pre-tax income (loss) from operations was $290,363
for the first quarter of 2007 compared to ($12,587) for the same period of 2006.
The increase in revenues for the first quarter of 2006 primarily relates to a
reduction in realized losses taken in the first quarter of 2006 which
significantly reduced revenue in that period. The increase in pre-tax income for
the first quarter of 2007 primarily relates to the aforementioned revenue
increase coupled with reduced expenses during the period relative to stock
compensation expense and the adjustment to the actuarially determined net
periodic pension cost.



Federal
Income Taxes



The provision (benefit) for federal income taxes is based on the estimated
effective annual tax rate. Deferred taxes reflect the net tax effects of
temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for income tax purposes.
Income (loss) before federal income taxes differs from taxable income
principally due to the dividends-received deduction, the 404(k) dividend
deduction and the small life insurance company tax deduction. The effective tax
rate was 17.7% for the three months ended March 31, 2007 compared to 18.1% for
the three months ended March 31, 2006.



Off-Balance
Sheet Arrangements



We have no
off-balance sheet arrangements as of March 31, 2007.



Forward Looking
Information



We caution readers regarding certain forward-looking statements contained in
this report and in any other statements made by us or on our behalf, whether or
not in future filings with the Securities and Exchange Commission.
Forward-looking statements are statements not based on historical information
and which relate to future operations, strategies, financial results, or other
developments. Statements using verbs such as "expect", "anticipate", "believe"
or words of similar import generally involve forward-looking statements. Without
limiting the foregoing, forward-looking statements include statements which
represent our beliefs concerning future levels of sales and redemptions of
Investors Heritage Life's products, investment spreads and yields, or our
earnings and profitability.



Forward-looking statements are necessarily based on estimates and assumptions
that are inherently subject to significant business, economic and competitive
uncertainties and contingencies, many of which are beyond our control and many
of which are subject to change. These uncertainties and contingencies could
cause actual results to differ materially from those expressed in any
forward-looking statements made by us or on our behalf. Whether or not actual
results differ materially from forward-looking statements may depend on numerous
foreseeable and unforeseeable factors and developments. Some of these may be
national in scope, such as general economic conditions, changes in tax law and
changes in interest rates. Some may be related to the insurance industry
generally, such as pricing competition, regulatory developments, industry
consolidation and the effects of competition in the insurance business from
other insurance companies and other financial institutions operating in our
market area and elsewhere. Others may relate to us specifically, such as credit,
volatility and other risks associated with our investment portfolio. We caution
that such factors are not exclusive. We disclaim any obligation to update
forward-looking information.



ITEM 3.
Quantitative and Qualitative Disclosures about Market Risk



There have been no significant or material changes in our market risks since
December 31, 2006. Measuring market risk is a key function of our
asset/liability management process. To test financial risk and investment
strategy, we perform an asset adequacy analysis each year. Dynamic models of
both assets and liabilities are created to project financial results under
several shifts in the current interest rate environment. Results show that our
exposure to a relative 10% increase (decrease) in the interest rates prevalent
at December 31, 2006 is a net gain (loss) of less than $500,000. This analysis
is performed annually.



Items taken into account on the asset side include prepayment and liquidity
risks, asset diversification and quality considerations. On the liability side,
interest crediting strategies and policyholder and agent behavior (lapses,
loans, withdrawals and premium flow) are dynamically modeled in relationship to
the particular interest rate environment tested. Although we are careful to
ensure that these assumptions are consistent with the best available data,
interest-sensitive cash flows cannot be forecast with certainty and can deviate
significantly from the assumptions made.



Because asset and liability durations are continually changing as new
policyholder contracts are issued and as new investments are added to the
portfolio, we manage our balance sheet on an ongoing basis and its net exposure
to changes in interest rates may vary over time. Although the asset adequacy
analysis is not performed on a quarterly basis, we believe that our asset base
is sufficient to cover the minimal increases or decreases that would be expected
to occur during any particular year.



ITEM 4. Controls
and Procedures



As of the end of the period covered by this Form 10-Q, we performed an
evaluation, under the supervision and with the participation of management,
including our Company's Chief Executive Officer and Chief Financial Officer, of
the effectiveness of the design and operation of our disclosure controls and
procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Securities
Exchange Act of 1934. Based upon that evaluation, the Chief Executive Officer
and Chief Financial Officer concluded that our disclosure controls and
procedures are effective in timely alerting them to material information
relating to the Company (including its consolidated subsidiaries) required to be
included in this Quarterly Report on Form 10-Q. There have been no significant
changes in our internal controls or in other factors which could significantly
affect internal controls over financial reporting during this most recent
quarter or subsequent to the date we carried out our evaluation.



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PART II -- OTHER INFORMATION



ITEM 1.    Legal Proceedings



Kentucky Investors is not involved in any legal proceedings. From time to time
Investors Heritage Life is involved in litigation relating to claims arising out
of its operations in the normal course of business. As of May 10, 2007 Investors
Heritage Life is not a party to any legal proceedings, the adverse outcome of
which, in management's opinion, individually or in the aggregate, would have a
material adverse effect on our financial condition or results of operations.



ITEM 1A. Risk
Factors



There have been no material changes from risk factors as previously disclosed in
our Annual Report on Form 10-K.



ITEM
2.   Unregistered Sales of Equity Securities and Use of Proceeds



No share repurchases were made pursuant to a publicly announced plan or program.
All share repurchases were shares tendered by employees as part of our 401(k)
plan.



ITEM 3.
  Defaults Upon Senior Securities



None



ITEM 4.
  Submission of Matters to a Vote of Security Holders



None



ITEM 5.   Other
Information



None



ITEM 6.
  Exhibits



31.1 & 31.2
			Certifications pursuant to Securities and Exchange
			Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of
			the Sarbanes-Oxley Act of 2002.32.1
			Certifications Pursuant to 18 U.S.C. Section 1350, as
			adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.




---





SIGNATURESPursuant to the requirements of the Securities and
			Exchange Act of 1934, the registrant has duly caused this report to
			be signed on its behalf by the undersigned thereunto duly
			authorized.KENTUCKY INVESTORS, INC.BY: /s/Harry Lee Waterfield IIHarry Lee Waterfield IIDATE: May 10, 2007
			PresidentBY: /s/Raymond L. CarrRaymond L. CarrDATE: May 10, 2007
			Vice President - Chief Financial Officer