UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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 March 31, 2008 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_______to______

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

(Address of Principal Executive Offices)

64111-2565

(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 o

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 o

Accelerated filer

Non-accelerated filer o

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

Yes o

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 March 31, 2008

Common Stock, $1.25 par

11,637,513 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.......................	16

Item 3. Quantitative and Qualitative Disclosures About Market Risk..........................................................	36

Item 4. Controls and Procedures....................................................................................................	36


Part II. Other Information.............................................................................................................	37

Item 1. Legal Proceedings.............................................................................................................	37

Item 4. Submission of Matters to a Vote of Security Holders...................................................................	37

Item 5. Other Information............................................................................................................	38

Item 6. Exhibits.........................................................................................................................	40

Signatures................................................................................................................................	41

Part I Financial Information

Item 1. Financial Statements (Unaudited)

Amounts in thousands, except share data

KANSAS CITY LIFE INSURANCE COMPANY
CONSOLIDATED BALANCE SHEETS

	March 31	December 31
	2008	2007
ASSETS	(Unaudited)
Investments:
Fixed maturity securities available for sale, at fair value	$ 2,647,763	$ 2,631,073
Equity securities available for sale, at fair value	62,992	59,149
Mortgage loans	440,929	450,148
Real estate	94,455	96,049
Policy loans	91,434	92,803
Short-term investments	8,768	36,522
Total investments	3,346,341	3,365,744

Cash	6,829	12,158
Accrued investment income	40,481	36,499
Deferred acquisition costs	215,601	217,512
Value of business acquired	72,472	73,517
Reinsurance receivables	169,813	162,340
Property and equipment	27,119	27,781
Other assets	37,533	36,164
Separate account assets	376,728	420,393
Total assets	$ 4,292,917	$ 4,352,108

LIABILITIES
Future policy benefits	$ 851,574	$ 851,277
Policyholder account balances	2,063,476	2,087,965
Policy and contract claims	38,749	31,742
Other policyholder funds	114,131	107,109
Notes payable	41,886	10,400
Income taxes	25,549	40,300
Other liabilities	116,699	118,521
Separate account liabilities	376,728	420,393
Total liabilities	3,628,792	3,667,707

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	30,970	30,244
Retained earnings	780,572	780,133
Accumulated other comprehensive loss	(34,552)	(19,811)
Treasury stock, at cost (2008 - 6,859,167 shares;
2007 - 6,731,643 shares)	(135,986)	(129,286)
Total stockholders' equity	664,125	684,401

Total liabilities and stockholders' equity	$ 4,292,917	$ 4,352,108
See accompanying Notes to Consolidated Financial Statements (Unaudited).

KANSAS CITY LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Quarter ended March 31
	2008	2007