UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FOR ANNUAL AND TRANSITION REPORTS

FORM 10-Q

[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]

For the Quarterly Period ended June 30, 2006 or

[ ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

For the Transition Period from

Commission File Number 2-40764

KANSAS CITY LIFE INSURANCE COMPANY

(Exact Name of Registrant as Specified in its Charter)

		Missouri			44-0308260
(State or Other Jurisdiction of				(I.R.S. Employer
	Incorporation or Organization)		Identification Number)

	3520 Broadway, Kansas City, Missouri	64111-2565
(Address of Principal Executive Offices)			(Zip Code)

Registrant's Telephone Number, including Area Code: 816-753-7000

Not Applicable

(Former name or former address, if changed since last report)

Indicate 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]

No [ ]

Indicate 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. (Check one):

Large accelerated filer [ ]

Accelerated filer [X]

Non-accelerated filer [ ]

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)

Yes [ ]

No [X]

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

	Class	Outstanding June 30, 2006
Common Stock, $1.25 par value			11,876,181 shares

KANSAS CITY LIFE INSURANCE COMPANY

TABLE OF CONTENTS

Part I. Financial Information.........................................................................................................	3

Item 1. Financial Statements (Unaudited)..........................................................................................	3

Consolidated Balance Sheets...............................................................................................	3

Consolidated Statements of Income........................................................................................	4

Consolidated Statements of Cash Flows..................................................................................	5

Notes to Consolidated Financial Statements..............................................................................	6

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.......................	12

Item 3. Quantitative and Qualitative Disclosures About Market Risk..........................................................	26

Item 4. Controls and Procedures....................................................................................................	26


Part II. Other Information.............................................................................................................	27

Item 1. Legal Proceedings.............................................................................................................	27

Item 5. Other Information............................................................................................................	28

Item 6. Exhibits.........................................................................................................................	30

Signatures................................................................................................................................	31

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Part I Financial Information

Item 1. Financial Statements (Unaudited)

KANSAS CITY LIFE INSURANCE COMPANY

CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except share data)

			June 30		December 31
			2006		2005
ASSETS			(Unaudited)
Investments:
	Fixed maturity securities available for sale, at fair value		$	2,694,780	$	2,865,476
	Equity securities available for sale, at fair value			58,236		52,775
	Mortgage loans			463,739		458,668
	Real estate			123,236		81,870
	Policy loans			98,342		101,088
	Short-term investments			36,373		46,383
	Other investments			1,788		2,179
		Total investments		3,476,494		3,608,439

Cash				649		10,985
Accrued investment income				39,101		40,002
Deferred acquisition costs				224,877		226,963
Value of business acquired				87,329		89,505
Reinsurance receivables				163,763		162,700
Property and equipment				28,988		29,954
Other assets				23,607		21,964
Separate account assets				363,247		367,860
		Total assets	$	4,408,055	$	4,558,372

LIABILITIES
Future policy benefits			$	853,738	$	860,284
Policyholder account balances				2,228,214		2,278,418
Policy and contract claims				36,508		36,142
Other policyholder funds				90,728		93,197
Notes payable				17,787		27,282
Income taxes				13,040		40,155
Other liabilities				166,181		174,815
Separate account liabilities				363,247		367,860
		Total liabilities		3,769,443		3,878,153

STOCKHOLDERS' EQUITY
Common stock, par value $1.25 per share
	Authorized 36,000,000 shares,
		issued 18,496,680 shares		23,121		23,121
Additional paid in capital				25,426		25,063
Retained earnings				767,686		756,807
Accumulated other comprehensive loss				(58,747)		(8,406)
Less treasury stock, at cost (2006 - 6,620,499 shares;
	2005 - 6,578,046 shares)			(118,874)		(116,366)
		Total stockholders' equity		638,612		680,219

		Total liabilities and stockholders' equity	$	4,408,055	$	4,558,372
See accompanying Notes to Consolidated Financial Statements (Unaudited).

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KANSAS CITY LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(amounts in thousands, except share data)

Quarter ended June 30

Six Months ended June 30