We’ll Be
With You
KANSAS CITY LIFE INSURANCE COMPANY
HOME OFFICE: KANSAS CITY, MISSOURI
2010 Annual Report
Message from the President
Kansas City Life Insurance Company has faced a vari-
ety of opportunities and challenges during its 115-year
history. While the economy generally improved dur-
ing 2010, many of the issues that were evident in 2009
remained. The low interest rate environment continues
to present special challenges to the financial industry
and, in particular, the insurance sector. However, Kan-
sas City Life has responded to this adversity by staying
focused on making the best decisions for the long term
and its fundamental mission of providing Security
Assured to its policyholders.
The Company is focused on providing consumers with
the products they need to help assure financial security.
In 2010, the Lifetime Income Rider was introduced in
response to consumer demand. As many consumers watched their retirement portfolio
dwindle during the recent recession, this new product rider was specifically designed to
provide guaranteed income for life and income flexibility from a Kansas City Life fixed
annuity. Moving forward, the Company will explore additional products and riders to
enhance its already strong portfolio.
The Company recorded net income for 2010 of $22.3 million or $1.95 per share, an
increase from $10.7 million or $0.93 per share for the same period in 2009. The changes
that impacted the year included a $10.6 million improvement in realized investment
gains and losses, growth in insurance revenues, lower amortization of deferred acquisi-
tion costs and reduced operating expenses. Partially offsetting these improvements was an
increase in policyholder benefits.
Total life insurance premiums increased $2.5 million or 2% for the year compared to the
prior year, as new life insurance premiums increased $2.3 million or 16%. The growth
was driven by an increase of 29% in life insurance premiums from new sales in the Old
American segment. In addition, total life insurance premiums improved from increases in
renewal premiums on individual life insurance products. Deposits from new universal life
Stockholder Information
CORPORATE HEADQUARTERS
Kansas City Life Insurance Company
3520 Broadway
Post Office Box 219139
Kansas City, Missouri 64121-9139
Telephone: 816-753-7000
Fax: 816-753-4902
Internet: http://www.kclife.com
E-mail: kclife@kclife.com
NOTICE OF ANNUAL MEETING
The annual meeting of stockholders will be held at 9 a.m. on Thursday, April 21, 2011 at Kansas City
Life Insurance Company’s corporate headquarters.
TRANSFER AGENT
Janice Poe, Stock Agent and Assistant Secretary
Kansas City Life Insurance Company
Post Office Box 219139
Kansas City, Missouri 64121-9139
10-K REQUEST
Stockholders may request a free copy of Kansas City Life’s Form 10-K, as filed with the Securities and
Exchange Commission, by writing to Secretary, Kansas City Life Insurance Company.
SECURITY HOLDERS
As of Jan. 31, 2011, Kansas City Life had approximately 2,500 security holders, including individual
participants in security position listings.
Please refer to the Company’s Form 10-K and Proxy Statement as filed with the Secu-
rities and Exchange Commission (SEC).
Stock and Dividend information
Stock and Dividend Information
The following table presents the high and low prices for the Company’s common stock for the periods
indicated and the dividends declared per share and paid during such periods. The Company’s common
stock is traded on the NASDAQ Capital Market under the symbol “KCLI”.
2010
First quarter
Second quarter
Third quarter
Fourth quarter
2009
First quarter
Second quarter
Third quarter
Fourth quarter
High
Low
$
33.50
35.85
32.63
33.77
$
24.86
27.84
28.58
30.42
$
44.63
40.22
37.75
33.31
$
15.20
19.70
25.39
25.00
Dividend
Paid
$
$
$
$
0.27
0.27
0.27
0.27
1.08
0.27
0.27
0.27
0.27
1.08
A quarterly dividend of $0.27 per share was paid Feb. 9, 2011.
NASDAQ market quotations are compiled according to Company records and may reflect inter-dealer
prices, without markup, markdown or commission and may not necessarily represent actual transac-
tions.
2
15
Board of Directors – Kansas City Life Insurance Company
R. Philip Bixby
President, Chief Executive Officer and
Chairman of the Board
Kansas City Life Insurance Company
Kansas City, Missouri
John C. Cozad
President
Cozad Company, LLC
Platte City, Missouri
Richard L. Finn
Walter E. Bixby, LLIF
Vice Chairman of the Board
Kansas City Life Insurance Company
President
Retired Senior Vice President, Finance
Kansas City Life Insurance Company
Kansas City, Missouri
Cecil R. Miller, CPA
Retired Partner
KPMG LLP
Kansas City, Missouri
Mark A. Milton, FSA, CERA, MAAA
Senior Vice President and Actuary
Kansas City Life Insurance Company
Kansas City, Missouri
Old American Insurance Company
Nancy Bixby Hudson
Bradford T. Nordholm
Kansas City, Missouri
Kevin G. Barth
President and Chief Operating Officer
Commerce Bank
Kansas City, Missouri
William R. Blessing
Retired Senior Vice President, Corporate
Strategy and Development
Embarq
Overland Park, Kansas
Michael Braude
Retired President and
Chief Executive Officer
Kansas City Board of Trade
Kansas City, Missouri
Investor
Lander, Wyoming
Daryl D. Jensen, MAAA, FLMI
Retired Vice President of
Finance
Western Institutional Review Board
Olympia, Washington
Retired President and Vice Chairman
of the Board
Sunset Life Insurance Company of
America
Kansas City, Missouri
Tracy W. Knapp
Senior Vice President, Finance
Kansas City Life Insurance Company
Kansas City, Missouri
Chief Executive Officer
Starwood Energy Group Global LLC
Greenwich, Connecticut
William A. Schalekamp, JD, CLU, FLMI
Retired Senior Vice President,
General Counsel and Secretary
Kansas City Life Insurance Company
Kansas City, Missouri
and variable universal life products increased $3.7 million or 33% for the year compared
to the prior year. The growth in overall new life insurance sales was primarily attributable
to positive results being attained from the Company’s recruiting efforts and the improved
productivity of general agents and agents, along with an improving economy.
The Company experienced realized investment gains of $0.5 million for the year. This
represented significant improvement from the realized losses recognized one year ear-
lier. The low interest rate and improving overall credit environment resulted in improved
fair values within the Company’s investment portfolio and further strengthened the Com-
pany’s capital position. Specifically, the investment portfolio had a net unrealized gain
position of $110.2 million at December 31, 2010, an improvement of $110.0 million
from December 31, 2009. The Company’s stockholders’ equity improved 8% during the
year, further strengthening the Company’s capital position.
In addition, the Company continues to focus resources on the training and development
of its field force. Specifically, the Company places a priority on recruiting new general
agents and agents, both of which are essential for the Company’s long-term success.
While many in the industry have abandoned the agency career-based system, the Com-
pany believes this system sets it apart from competitors in the life insurance industry.
During 2010, 30 new general agents joined the Company as valued partners.
The Company believes that its relationships with its shareholders, policyholders, general
agents and agents, and associates are the foundation from which the Company builds its
future. Kansas City Life continues to provide competitive products, superior customer
service, financial strength, specialized training and superior sales and marketing support.
Kansas City Life is a company that has proven its financial strength over time and contin-
ues to provide value-oriented products, throughout economic cycles.
R. Philip Bixby
President, Chief Executive Officer and
Chairman of the Board
14
Board of Directors
3
The Kansas City Life Group of Companies
Kansas City Life Insurance Company
Since 1895, Kansas City Life Insurance Company (www.kclife.com) has been dedi-
cated to the present and future financial security of its customers. Kansas City Life
and its subsidiaries provide financial services, including insurance and investments,
to consumers throughout 48 states and the District of Columbia.* More than 2,200
general agents and agents serve individuals, families, small businesses and corpora-
tions with a diverse range of products including universal life, term life, whole life,
variable life insurance,* variable annuities,* fixed deferred annuities and group prod-
ucts. Kansas City Life has been providing Security Assured for more than 115 years.
Old American Insurance Company
Since 1939, the mission of Old American Insurance Company (www.oaic.com) has
been to provide peace of mind to the senior market and, in turn, enhance the quality
of life for policyholders and their beneficiaries. Agents assist individuals ages 50 – 85
through final arrangements planning, charitable giving life insurance, and Social
Security and retirement income replacement insurance. In addition, Old American
began targeting individuals ages 20 to 65 in 2009 with its Level Term 20 life insur-
ance product. The subsidiary operates in 46 states and the District of Columbia.
Sunset Financial Services Inc.*
Sunset Financial Services (www.sunsetfinancial.com) is a full-service brokerage firm
and registered investment advisor. Sunset Financial Services’ registered representatives
are also licensed with Kansas City Life. Investment options include variable products,
mutual funds, stocks and bonds, money market funds, CDs and asset management
products.
Sunset Life Insurance Company of America
Sunset Life (www.sunsetlife.com) was originally founded in 1937 in Olympia, Wash.
Kansas City Life purchased Sunset Life in 1974 and its operations were consolidated
into the Company’s Home Office in 1999. The Sunset Life sales force was integrated
into the Kansas City Life sales force in 2006.
Financial Ratings, evaluated by A.M. Best
Kansas City Life Insurance Company – A (Excellent; Stable Outlook)
Old American Insurance Company – B++ (Good; Positive Outlook)
Sunset Life Insurance Company – A (Excellent; Stable Outlook)
These ratings represent A.M. Best’s opinion of the financial strength and stability of
Kansas City Life, Old American and Sunset Life Insurance Companies and each com-
pany’s ability to meet ongoing obligations to policyholders, as of June 2010.
There are 15 financial strength ratings offered by A.M Best, ranging from A++ (superior)
to F (in liquidation).
Please refer to the Company’s Form 10-K and Proxy Statement as filed
with the Securities and Exchange Commission (SEC).
4
*Securities are distributed through Sunset Financial Services Inc., 3520 Broadway,
Kansas City, MO 64111, 816-753-7000. Member FINRA and SIPC.
Senior Officers
Kansas City Life
Insurance Company
R. Philip Bixby
President, Chief Executive Officer and
Chairman of the Board
Walter E. Bixby, LLIF
Vice Chairman of the Board
Kansas City Life Insurance Company
President
Old American Insurance Company
Charles R. Duffy Jr., FLMI
Senior Vice President, Operations
Tracy W. Knapp
Senior Vice President, Finance
Donald E. Krebs, MSM, CLU, ChFC
Senior Vice President, Sales and Marketing
Mark A. Milton, FSA, CERA, MAAA
Senior Vice President and Actuary
William A. Schalekamp, JD, CLU, FLMI*
Senior Vice President,
General Counsel and Secretary
Gregory M. Galvin
Vice President, Real Estate
David A. Laird, CPA, FLMI
Vice President and Controller
Bruce G. Olberding
Vice President, Broker Dealer
Robert J. Milroy
Vice President, Underwriting and New
Richard D. Ropp, FLMI, ACS
Vice President, Customer Services and
Claims
Stephen E. Ropp
Vice President, Operations Services
J. Todd Salash
Vice President, Computer Information
Services
Dan L. Schick, CPA, CLU, FLMI
Vice President and Auditor
Jeffrey M. Seeman
Vice President, Group
Philip A. Williams, CFA
Vice President, Securities
Old American
Insurance Company
R. Philip Bixby
Chairman of the Board
Walter E. Bixby, LLIF
President
John C. Alderton
Vice President, Sales
Business
Richard D. Ropp, FLMI, ACS
Vice President, Customer Services and
Claims
Sunset Life Insurance
Company of America
R. Philip Bixby
President, Chairman of the Board
Walter E. Bixby, LLIF
Vice Chairman of the Board
Daryl D. Jensen, MAAA, FLMI**
Vice Chairman of the Board
Donald E. Krebs, MSM, CLU, ChFC
Vice President, Sales and Marketing
David A. Laird, CPA, FLMI
Vice President and Controller
Robert J. Milroy
Vice President, Insurance Services and
Assistant Secretary
Mark A. Milton, FSA, CERA, MAAA
Vice President and Actuary
Richard D. Ropp, FLMI, ACS
Vice President, Policy Administration
A. Craig Mason, Jr.
Vice President, General Counsel and
Secretary
Gary K. Hoffman, JD, CLU, FLMI
Vice President, Associate General Counsel
and Secretary
Matthew R. O’Connor
Secretary
Robert J. Milroy
Vice President, Underwriting and New
Tracy W. Knapp
Chief Financial Officer
*William A. Schalekamp retired from the
Company in October 2010
David A. Laird, CPA, FLMI
Vice President and Controller
**Daryl D. Jensen retired as Sunset Life Vice
Chairman in April 2010
Business
John L. Nogalski, CPA, FLMI
Vice President, Taxes
Kansas City Life
Insurance Company
Old American Insurance Company
Sunset Life Insurance
Company of America
Sunset Financial Services Inc.
Home Office
3520 Broadway
Kansas City, MO 64111
Phone: 816-753-7000
Visit us on the Internet:
www.kclife.com
www.oaic.com
www.sunsetlife.com
www.sunsetfinancial.com
13
Sunset Financial Services Inc.
Kansas City Life Insurance Company’s wholly-owned broker-dealer facilitates the purchase, sale
and management of securities, such as variable universal life and variable annuity products.
Through this alliance, Sunset Financial Services (SFS) provides insurance agents who are regis-
tered representatives the flexibility to also market a wide range of securities products through a
single relationship.
Despite continued domestic and international market volatility, SFS performed well during
2010. Specifically, SFS recorded a 16% increase in gross revenue for 2010, following a 34%
decrease in 2009. Assets under management also increased during 2010.
Moving forward, SFS has laid the groundwork for increased sales and improved performance.
Further, SFS will continue working with Kansas City Life to help recruit and retain quality agen-
cies and producers, who are interested in selling securities products.
Sunset Financial Services is Kansas City Life’s wholly-owned broker-dealer. These six Home Office associates work to provide
representatives and securities customers with the services needed to secure a sound financial future. The six individuals represent
more than 105 years of service to the Company. Pictured (from left): Janet Tate, senior brokerage services associate; Kelly Ul-
lom, assistant vice president, chief compliance officer; Bruce Olberding, president; Tonja Coleman, operations services associate;
Stephen Foster, project manager; and Susie Denney, assistant vice president, chief operations officer.
Stephen Foster: 12 years of educating the field
Since 1999, Stephen Foster has played a key role in bridging the gap between the Sunset
Financial Services (SFS) Century II product portfolio, the Company’s field force and clients.
As project manager for the portfolio, Stephen works to educate the field force so that they
fully understand the value of each product and can effectively convey that information to their
clients.
“It is very rewarding that the knowledge I have passed on to our field force ultimately
helps their clients achieve a better life through financial security,” Stephen says. “I enjoy know-
ing that I’m helping them prepare for whatever the future holds.”
In turn, Stephen’s work has helped bring out the best in him.
“I enjoy working for a Company with such strong family values and it has taught me a lot about mutual respect,” says
Stephen. “Having a strong foundation of integrity and dedication is rare these days and I am proud of that heritage.”
12
Corporate
Highlights
We’ll be with you …
We’re Kansas City Life
Since 1895, Kansas City Life Insur-
ance Company has been a leader
in the life insurance and financial
services industry. The men and
women of Kansas City Life are
dedicated to offering the Com-
pany’s shareholders, policyholders,
general agents and agents with
the superior products and quality
services needed to build a solid
financial plan.
So who are we? We are a united
Company, dedicated to the values
of honesty and integrity, sound
business practices and most of all
Security Assured. For more than
115 years, Kansas City Life has
built a foundation of success that is
well documented. Through eco-
nomic prosperity and challenges,
our promise is clear: We’ll be with
you … We’re Kansas City Life.
5
The Sales and Marketing Department provides the Company’s field force
with excellent marketing service and support to assist in providing Secu-
rity Assured to the Company’s policyholders. Representing the department
are five individuals whose combined 107 years of service to the Company
embody the mission of Security Assured. Pictured (from left): Cheryl
Genova, advanced sales underwriter; Dale French, senior application sys-
tems analyst; Leigh Ann Faherty, senior administrative assistant; Mary Jo
Olinger, manager, sales materials; and Jim Wilcox (seated), assistant vice
president, marketing services and product information.
Dale French:
19 years of helping agencies succeed
For almost 20 years, Dale French,
senior application systems analyst, Sales
and Marketing, has been helping Kansas
City Life Insurance Company’s general
agents and agents successfully grow their
businesses. In fact, Dale manages all the
sales-based production data for each field force member under contract
with the Company. By tracking production, he is able to assist agents in
planning for the future and setting long-term production goals.
More importantly, Dale is not only supporting the Company’s field
force in their efforts to grow their businesses, he believes he is helping
policyholders gain financial security.
“Indirectly, I feel like I’ve helped our policyholders achieve the life
insurance and financial protection they need,” he says. “That definitely
gives me a sense of accomplishment.”
Since Dale joined Kansas City Life in 1992, he has witnessed first-
hand how the Company has grown in its commitment to provide Secu-
rity Assured to its policyholders. This dedication has always impressed
him, especially during the recent economic challenges.
“Witnessing the repercussions of the economic downturn has
helped me appreciate what it means to work for a stable company like
Kansas City Life. I will always value that.”
Individual
Insurance
Kansas City Life Insurance
Company’s Individual In-
surance segment provides
financial security to con-
sumers in 48 states. Life
insurance products are
distributed through two me-
diums: the Company’s field
force, and through alliance
with third-party marketing
arrangements.
Company’s field force
The Company’s field force
is represented by indepen-
dent agencies, which are
operated by general agents
and agents across the U.S.
Kansas City Life provides
each agency with the prod-
uct portfolio and marketing
support necessary to suc-
ceed in serving consumers
in their local markets. The
Company’s expanding prod-
uct portfolio and individual
one-on-one support from
the Home Office are attrac-
tive recruiting resources, set-
ting Kansas City Life apart
from many in the industry.
Third-party alliances
Independent alliances with
American Republic
In 1991, Old American joined forces with Kansas City Life Insurance Company, launching a
new chapter in the Company’s history. Walter E. Bixby, a fourth generation member of the Bixby
family leadership, has served as the Company’s President for nearly 15 years.
Old American accounted for 26% of Kansas City Life’s consolidated insurance revenues in 2010,
2009 and 2008. Old American had a 29% increase in new premiums during 2010, following
a 20% increase in new premiums in 2009. In fact, 2010 proved to be a banner year for Old
American in sales, following consecutive years of remarkable success. The Company recorded
more sales in each period during 2010 relative to 2009. Contributing to this success was the
experience, commitment and loyalty of veteran general agent managers who provided the
foundation for increased sales momentum. During 2010, four of the Company’s 25 general
agencies produced at least 2,000 new policies during the year. Additionally, two of the Company’s
agencies, McAfee and Associates in Hannibal, Mo., and Whittenburg Insurance and Investment
Group in Alpine, Utah, generated more than 3,000 new policies.
Old American continues to focus on the recruiting and development of new agencies and
agents. The six newly-hired general agencies in 2010 produced an impressive total of new sales.
In addition, approximately 40% of all new policies were produced by agents in their first three
years of service with the Company.
A key to the success of new agencies and agents, along with existing agencies, is the unique
ability of Old American to generate sales leads. Old American has a deep and successful history
as a pioneer in direct marketing techniques and processes. This ability remains a strategic
advantage for the Company and its field force, particularly in aiding the success of new agencies
and agents.
Moving forward, the Company plans to continue to expand its sales territories, increase its
recruiting efforts, remain focused on agent productivity for its general agencies and hold
steadfast in its approach to support the field force through its lead generation efforts. As always,
Old American will remain focused on its mission that has guided the Company for more than
seven decades – delivering peace of mind to the senior market.
11
The combined efforts of the New Business and Customer Services Departments supply
the Company’s policyholders and field force with outstanding, one-on-one support. With
a combined total of 145 years of experience, these five individuals have dedicated much
of their lives to service and Kansas City Life. Pictured (from left) Randy Hays, direc-
tor, underwriting research; Beth Bolyard, senior underwriting consultant; Dave Toney,
senior service specialist; Joyce Seuferling, manager, New Business; and Marta Conley,
senior service specialist.
Joyce Seuferling:
40 years of managing success
Much can change during the course of 40
years. For Kansas City Life Insurance Com-
pany’s New Business Department, one con-
stant remains throughout four decades: Joyce
Seuferling has anchored a staff that directly
impacts policyholders, general agents and
agents.
As manager for New Business and Training, Joyce fulfills many responsi-
bilities that include helping to keep new and potential policyholder informa-
tion moving through the application process from start to finish. With 40
years of experience, Joyce successfully oversees a department in which meticu-
lous accuracy and timeliness are imperative.
“We have a tremendous responsibility to our policyholders and our field
force,” Joyce says. “What we do impacts our distribution and how they inter-
act with their clients, so it’s important to us and we take our responsibility
seriously.”
Forty years can also change what a person values most. While Joyce be-
lieves she has always known the value of life insurance, she discovered its true
impact when Kansas City Life began publishing “Real Life Stories” designed
to illustrate how life insurance impacted real people.
“When we started circulating those stories, it hit me that I wasn’t just
helping unknown people I’ll never meet. The stories really showed me that
what we do has a direct impact on people’s lives, which is gratifying,” she says.
6
Old American Insurance Company
Old American Insurance Company opened its doors in 1939 to respond to a market need it still
serves today – the senior market. In its rich history, the Company has consistently been recognized
in the final expense industry for its considerable expertise and success at marketing final expense
insurance products through its nationwide general agency system with exclusive territories.
Old American Insurance Company supports its policyholders and field force through a variety of departments, including the
Customer Services, Marketing and New Business Departments. With more than 154 years of combined service, these associates
are leaders for their departments. Pictured (from left): Denise Ramsey, telephone inspector; Karla Tolbert, senior services associ-
ate; Kathy Meissen, agency services program coordinator; Mike Kershner, assistant vice president, New Business; Holly Ropp,
assistant vice president, marketing communications; and Barbara Shaw, senior services associate.
Kathy Meissen, an Old American staple for 35 years
For 35 years, Kathy Meissen has dedicated her service to Old American Insurance Com-
pany. As the agency services project coordinator for Sales and Marketing, Kathy’s days are oc-
cupied with tasks from building recruiting and marketing campaigns to managing production
numbers. For three and-a-half decades, Kathy has helped Old American grow, while helping
policyholders achieve peace of mind.
One of her favorite projects is to assist with the Company’s annual New Agent of Merit
seminar, where newly contracted agents attend a two-day conference at the Home Office.
“Watching these new agents learn and seeing their enthusiasm for the industry is amaz-
ing,” says Kathy. “They leave here with a new-found fire to be successful, which is impressive.”
That success has left an indelible mark on Kathy, and it drives her to continue to support the Company.
“Old American has stayed on course despite a multitude of changes since I started,” she says. “It’s amazing to have
witnessed these changes, and to watch how the Company has consistently stood by its standards and is just as, if not more,
successful as it was when I first joined.”
Insurance Company and GuideOne Mutual Insurance Company allow agents from both compa-
nies to distribute Kansas City Life’s products. These agreements provide agents from both compa-
nies with the complementary products and services they need to offer financial security to their
clients.
Life insurance sales
Life insurance sales and new business production at Kansas City Life are measured by new pre-
miums recorded and new deposits received. Premiums include receipts from traditional indi-
vidual life insurance and immediate annuity products. Deposits are received from universal life
insurance, variable universal life insurance and fixed deferred and variable annuity products.
The Individual Insurance segment generated $69.2 million in total premiums for 2010, remaining
flat compared to 2009. Total renewal premiums increased 1% in 2010, compared to a 1% de-
crease in the previous year.
Total new deposits declined $3.2 million or 3% in 2010, following a $34.8 million or 51% in-
crease in 2009. The decline in 2010 was due to an $8.9 million or 12% decrease in new fixed
deferred annuity deposits. Partially offsetting the decrease in new deposits in 2010 were the
following improvements: new universal life deposits increased $3.5 million or 35%, new vari-
able annuity deposits increased $2.0 million or 13%, and new variable universal life deposits
increased $0.2 million or 19%.
Total renewal deposits increased $1.8 million or 1% in 2010, due to a $5.7 million or 21% in-
crease in fixed deferred annuity deposits. This increase largely resulted from higher sales of this
product than experienced during 2009. The increases in sales of fixed deferred annuities during
2009 were attributed to consumer preferences for fixed-rate products, resulting from the volatility
in the equity markets. This volatility and the difficult economic environment were also significant
factors in the declines in sales of variable annuities, variable universal life and universal life.
Future growth
The Individual Insurance segment is an essential part of Kansas City Life’s core business, repre-
senting a majority of the Company’s revenue and net income.
The Company plans to continue to grow the segment by recruiting talented general agents and
agents. Additions to the product portfolio, increased focus on sales development and enhanced
marketing support are elements that will be emphasized to attract new field representatives.
As an additional point of emphasis, the Company will also seek potential third-party market-
ing relationships, such as those established with American Republic and GuideOne, to enhance
future sales.
10
7
The segment’s core distribution and third-party arrangements combined to set a sales record for
Group Insurance including an increase in new premiums of 22% over 2009.
In 2010, the Group Insurance segment generated 20% of the Company’s consolidated insurance
revenues, the same proportion as in 2009. Total Group premiums increased $1.3 million or 2%
in 2010, following an $0.8 million or 1% increase in 2009.
In addition, the Company uses reinsurance in its life and disability product lines to help mitigate
risk. Reinsurance on premiums increased $0.9 million or 11% in 2010, following a $0.6 million
or 8% increase in 2009. The increase in 2010 was primarily due to an increase in short-term
disability business that is highly reinsured. The increase in 2009 was largely due to short- and
long-term disability business sold through a third-party arrangement.
Moving forward, the Group Insurance segment is focused on three primary areas of emphasis to
help improve sales:
1. Growing in-force business, both through the Company’s sales representatives
as well as select third-party marketing arrangements.
2.
3.
Improving administrative efficiency through increased use of customer-
interface technology, which is designed to reduce expenses and improve
customer service.
Enhancing the segment’s product portfolio, through delivery of new product
offerings and flexible options to meet the dynamic needs of the employee
benefits market.
Group Insurance
Kansas City Life Insur-
ance Company offers
several insurance prod-
ucts in the Group Insur-
ance segment, including
dental, life, vision, and
short- and long-term
disability insurance.
These offerings encom-
pass both traditional,
employer-funded group
insurance, as well as vol-
untary, employee-paid
products.
The Group Insurance
segment markets its
products primarily to
small- and mid-size or-
ganizations. Group prod-
ucts are sold through
sales representatives
who target a nationwide
network of independent
general agents and group
brokers, along with the
Company’s career gen-
eral agents. This sales
network is this segment’s
core distribution sys-
tem. The Company also
markets Group products
through select third-party
marketing arrangements.
The Group Department is dedicated to providing products and services designed
to offer benefit-solutions to both employees and employers. These five department
representatives combine for more than 102 years of service to the Company. Pictured
(from left) Talva Parker, assistant vice president, Group; Sheli Paull, manager Group
sales support; Jody Robinson, manager, Group client services (seated); Debbie Petroll,
senior Group sales coordinator; and Renee Medellin, Group underwriter (seated).
Twenty-six years and counting:
Renee Medellin thrives under pressure
As a member of Kansas City Life’s Group In-
surance Department, Renee Medellin’s responsibil-
ities keep her behind the scenes of the day-to-day
operation. But that doesn’t mean the role she plays
is any less important as those in the forefront.
As a Group Underwriter since 1988, Renee
works in a fast-paced, deadline-oriented envi-
ronment that relies on her to excel under pressure. She is responsible for
working directly with the Group Insurance segment’s sales force across the
U.S. to ensure its products, dental, vision, short- and long-term disability
and life insurance, are quoted properly. She and her team are essential to
provide quick and accurate price quotes in a very competitive market. She
is proud of helping people gain their benefits.
“In this or any economy, it is absolutely imperative for people to have
benefits,” Renee says. “We play an important role by providing those prod-
ucts, which is rewarding to know that I’m making a difference.”
Renee’s days are often spent adjusting to what any given day may bring,
but that doesn’t slow her down. Instead, she concentrates on one quote at a
time, one client at a time knowing that she’s making a difference.
“People recognize our history, and they understand what we stand for,”
she says. “I’m proud to work for Kansas City Life.”
8
9
The segment’s core distribution and third-party arrangements combined to set a sales record for
Group Insurance including an increase in new premiums of 22% over 2009.
In 2010, the Group Insurance segment generated 20% of the Company’s consolidated insurance
revenues, the same proportion as in 2009. Total Group premiums increased $1.3 million or 2%
in 2010, following an $0.8 million or 1% increase in 2009.
In addition, the Company uses reinsurance in its life and disability product lines to help mitigate
risk. Reinsurance on premiums increased $0.9 million or 11% in 2010, following a $0.6 million
or 8% increase in 2009. The increase in 2010 was primarily due to an increase in short-term
disability business that is highly reinsured. The increase in 2009 was largely due to short- and
long-term disability business sold through a third-party arrangement.
Moving forward, the Group Insurance segment is focused on three primary areas of emphasis to
help improve sales:
1. Growing in-force business, both through the Company’s sales representatives
as well as select third-party marketing arrangements.
2.
3.
Improving administrative efficiency through increased use of customer-
interface technology, which is designed to reduce expenses and improve
customer service.
Enhancing the segment’s product portfolio, through delivery of new product
offerings and flexible options to meet the dynamic needs of the employee
benefits market.
Group Insurance
Kansas City Life Insur-
ance Company offers
several insurance prod-
ucts in the Group Insur-
ance segment, including
dental, life, vision, and
short- and long-term
disability insurance.
These offerings encom-
pass both traditional,
employer-funded group
insurance, as well as vol-
untary, employee-paid
products.
The Group Insurance
segment markets its
products primarily to
small- and mid-size or-
ganizations. Group prod-
ucts are sold through
sales representatives
who target a nationwide
network of independent
general agents and group
brokers, along with the
Company’s career gen-
eral agents. This sales
network is this segment’s
core distribution sys-
tem. The Company also
markets Group products
through select third-party
marketing arrangements.
The Group Department is dedicated to providing products and services designed
to offer benefit-solutions to both employees and employers. These five department
representatives combine for more than 102 years of service to the Company. Pictured
(from left) Talva Parker, assistant vice president, Group; Shelli Paul, senior Group
sales coordinator; Jody Robinson, manager, Group contract and customer services
(seated); Debbie Petroll, senior Group sales coordinator; and Renee Medellin, Group
underwriter (seated).
Twenty-six years and counting:
Renee Medellin thrives under pressure
As a member of Kansas City Life’s Group In-
surance Department, Renee Medellin’s responsibil-
ities keep her behind the scenes of the day-to-day
operation. But that doesn’t mean the role she plays
is any less important as those in the forefront.
As a Group Underwriter since 1988, Renee
works in a fast-paced, deadline-oriented environment that relies on her to
excel under pressure. She is responsible for working directly with the Group
Insurance segment’s sales force across the U.S. to ensure its products, den-
tal, vision, short- and long-term disability and life insurance, are quoted
properly. She and her team are essential to provide quick and accurate
price quotes in a very competitive market. She is proud of helping people
gain their benefits.
“In this or any economy, it is absolutely imperative for people to have
benefits,” Renee says. “We play an important role by providing those prod-
ucts, which is rewarding to know that I’m making a difference.”
Renee’s days are often spent adjusting to what any given day may bring,
but that doesn’t slow her down. Instead, she concentrates on one quote at a
time, one client at a time knowing that she’s making a difference.
“People recognize our history, and they understand what we stand for,”
she says. “I’m proud to work for Kansas City Life.”
8
9
Old American Insurance Company
Old American Insurance Company opened its doors in 1939 to respond to a market need it still
serves today – the senior market. In its rich history, the Company has consistently been recognized
in the final expense industry for its considerable expertise and success at marketing final expense
insurance products through its nationwide general agency system with exclusive territories.
Old American Insurance Company supports its policyholders and field force through a variety of departments, including the
Customer Services, Marketing and New Business Departments. With more than 154 years of combined service, these associates
are leaders for their departments. Pictured (from left): Denise Ramsey, telephone inspector; Karla Tolbert, senior services associ-
ate; Kathy Meissen, agency services program coordinator; Mike Kershner, assistant vice president, New Business; Holly Ropp,
assistant vice president, marketing communications; and Barbara Shaw, senior services associate.
Kathy Meissen: An Old American staple for 35 years
For 35 years, Kathy Meissen has dedicated her service to Old American Insurance Com-
pany. As the agency services project coordinator for Sales and Marketing, Kathy’s days are oc-
cupied with tasks from building recruiting and marketing campaigns to managing production
numbers. For three and-a-half decades, Kathy has helped Old American grow, while helping
policyholders achieve peace of mind.
One of her favorite projects is to assist with the Company’s annual New Agent of Merit
seminar, where newly contracted agents attend a two-day conference at the Home Office.
“Watching these new agents learn and seeing their enthusiasm for the industry is amaz-
ing,” says Kathy. “They leave here with a new-found fire to be successful, which is impressive.”
That success has left an indelible mark on Kathy, and it drives her to continue to support the Company.
“Old American has stayed on course despite a multitude of changes since I started,” she says. “It’s amazing to have
witnessed these changes, and to watch how the Company has consistently stood by its standards and is just as, if not more,
successful as it was when I first joined.”
Insurance Company and GuideOne Mutual Insurance Company allow agents from both compa-
nies to distribute Kansas City Life’s products. These agreements provide agents from both compa-
nies with the complementary products and services they need to offer financial security to their
clients.
Life insurance sales
Life insurance sales and new business production at Kansas City Life are measured by new pre-
miums recorded and new deposits received. Premiums include receipts from traditional indi-
vidual life insurance and immediate annuity products. Deposits are received from universal life
insurance, variable universal life insurance and fixed deferred and variable annuity products.
The Individual Insurance segment generated $69.2 million in total premiums for 2010, remaining
flat compared to 2009. Total renewal premiums increased 1% in 2010, compared to a 1% de-
crease in the previous year.
Total new deposits declined $3.2 million or 3% in 2010, following a $34.8 million or 51% in-
crease in 2009. The decline in 2010 was due to an $8.9 million or 12% decrease in new fixed
deferred annuity deposits. Partially offsetting the decrease in new deposits in 2010 were the
following improvements: new universal life deposits increased $3.5 million or 35%, new vari-
able annuity deposits increased $2.0 million or 13%, and new variable universal life deposits
increased $0.2 million or 19%.
Total renewal deposits increased $1.8 million or 1% in 2010, due to a $5.7 million or 21% in-
crease in fixed deferred annuity deposits. This increase largely resulted from higher sales of this
product than experienced during 2009. The increases in sales of fixed deferred annuities during
2009 were attributed to consumer preferences for fixed-rate products, resulting from the volatility
in the equity markets. This volatility and the difficult economic environment were also significant
factors in the declines in sales of variable annuities, variable universal life and universal life.
Future growth
The Individual Insurance segment is an essential part of Kansas City Life’s core business, repre-
senting a majority of the Company’s revenue and net income.
The Company plans to continue to grow the segment by recruiting talented general agents and
agents. Additions to the product portfolio, increased focus on sales development and enhanced
marketing support are elements that will be emphasized to attract new field representatives.
As an additional point of emphasis, the Company will also seek potential third-party market-
ing relationships, such as those established with American Republic and GuideOne, to enhance
future sales.
10
7
Individual
Insurance
Kansas City Life Insurance
Company’s Individual In-
surance segment provides
financial security to con-
sumers in 48 states. Life
insurance products are
distributed through two me-
diums: the Company’s field
force, and through alliance
with third-party marketing
arrangements.
Company’s field force
The Company’s field force
is represented by indepen-
dent agencies, which are
operated by general agents
and agents across the U.S.
Kansas City Life provides
each agency with the prod-
uct portfolio and marketing
support necessary to suc-
ceed in serving consumers
in their local markets. The
Company’s expanding prod-
uct portfolio and individual
one-on-one support from
the Home Office are attrac-
tive recruiting resources, set-
ting Kansas City Life apart
from many in the industry.
Third-party alliances
Independent alliances with
American Republic
In 1991, Old American joined forces with Kansas City Life Insurance Company, launching a
new chapter in the Company’s history. Walter E. Bixby, a fourth generation member of the Bixby
family leadership, has served as the Company’s President for nearly 15 years.
Old American accounted for 26% of Kansas City Life’s consolidated insurance revenues in 2010,
2009 and 2008. Old American had a 29% increase in new premiums during 2010, following
a 20% increase in new premiums in 2009. In fact, 2010 proved to be a banner year for Old
American in sales, following consecutive years of remarkable success. The Company recorded
more sales in each period during 2010 relative to 2009. Contributing to this success was the
experience, commitment and loyalty of veteran general agent managers who provided the
foundation for increased sales momentum. During 2010, four of the Company’s 25 general
agencies produced at least 2,000 new policies during the year. Additionally, two of the Company’s
agencies, McAfee and Associates in Hannibal, Mo., and Whittenburg Insurance and Investment
Group in Alpine, Utah, generated more than 3,000 new policies.
Old American continues to focus on the recruiting and development of new agencies and
agents. The six newly-hired general agencies in 2010 produced an impressive total of new sales.
In addition, approximately 40% of all new policies were produced by agents in their first three
years of service with the Company.
A key to the success of new agencies and agents, along with existing agencies, is the unique
ability of Old American to generate sales leads. Old American has a deep and successful history
as a pioneer in direct marketing techniques and processes. This ability remains a strategic
advantage for the Company and its field force, particularly in aiding the success of new agencies
and agents.
Moving forward, the Company plans to continue to expand its sales territories, increase its
recruiting efforts, remain focused on agent productivity for its general agencies and hold
steadfast in its approach to support the field force through its lead generation efforts. As always,
Old American will remain focused on its mission that has guided the Company for more than
seven decades – delivering peace of mind to the senior market.
11
The combined efforts of the New Business and Customer Services Departments supply
the Company’s policyholders and field force with outstanding, one-on-one support. With
a combined total of 145 years of experience, these five individuals have dedicated much
of their lives to service and Kansas City Life. Pictured (from left) Randy Hays, direc-
tor, underwriting research; Beth Bolyard, senior underwriting consultant; Dave Toney,
senior service specialist; Joyce Seuferling, manager, New Business; and Marta Conley,
senior service specialist.
Joyce Seuferling:
40 years of managing success
Much can change during the course of 40
years. For Kansas City Life Insurance Com-
pany’s New Business Department, one con-
stant remains throughout four decades: Joyce
Seuferling has anchored a staff that directly
impacts policyholders, general agents and
agents.
As manager for New Business and Training, Joyce fulfills many responsi-
bilities that include helping to keep new and potential policyholder informa-
tion moving through the application process from start to finish. With 40
years of experience, Joyce successfully oversees a department in which meticu-
lous accuracy and timeliness are imperative.
“We have a tremendous responsibility to our policyholders and our field
force,” Joyce says. “What we do impacts our distribution and how they inter-
act with their clients, so it’s important to us and we take our responsibility
seriously.”
Forty years can also change what a person values most. While Joyce be-
lieves she has always known the value of life insurance, she discovered its true
impact when Kansas City Life began publishing “Real Life Stories” designed
to illustrate how life insurance impacted real people.
“When we started circulating those stories, it hit me that I wasn’t just
helping unknown people I’ll never meet. The stories really showed me that
what we do has a direct impact on people’s lives, which is gratifying,” she says.
6
Sunset Financial Services Inc.
Kansas City Life Insurance Company’s wholly-owned broker-dealer facilitates the purchase, sale
and management of securities, such as variable universal life and variable annuity products.
Through this alliance, Sunset Financial Services (SFS) provides insurance agents who are regis-
tered representatives the flexibility to also market a wide range of securities products through a
single relationship.
Despite continued domestic and international market volatility, SFS performed well during
2010. Specifically, SFS recorded a 16% increase in gross revenue for 2010, following a 34%
decrease in 2009. Assets under management also increased during 2010.
Moving forward, SFS has laid the groundwork for increased sales and improved performance.
Further, SFS will continue working with Kansas City Life to help recruit and retain quality agen-
cies and producers, who are interested in selling securities products.
Sunset Financial Services is Kansas City Life’s wholly-owned broker-dealer. These six Home Office associates work to provide
representatives and securities customers with the services needed to secure a sound financial future. The six individuals represent
more than 105 years of service to the Company. Pictured (from left): Janet Tate, senior brokerage services associate; Kelly Ul-
lom, assistant vice president, chief compliance officer; Bruce Olberding, president; Tonja Coleman, operations services associate;
Stephen Foster, project manager; and Susie Denney, assistant vice president, chief operations officer.
Stephen Foster: 12 years of educating the field
Since 1999, Stephen Foster has played a key role in bridging the gap between the Sunset
Financial Services (SFS) Century II product portfolio, the Company’s field force and clients.
As project manager for the portfolio, Stephen works to educate the field force so that they
fully understand the value of each product and can effectively convey that information to their
clients.
“It is very rewarding that the knowledge I have passed on to our field force ultimately
helps their clients achieve a better life through financial security,” Stephen says. “I enjoy know-
ing that I’m helping them prepare for whatever the future holds.”
In turn, Stephen’s work has helped bring out the best in him.
“I enjoy working for a Company with such strong family values and it has taught me a lot about mutual respect,” says
Stephen. “Having a strong foundation of integrity and dedication is rare these days and I am proud of that heritage.”
12
Corporate
Highlights
We’ll be with you …
We’re Kansas City Life
Since 1895, Kansas City Life Insur-
ance Company has been a leader
in the life insurance and financial
services industry. The men and
women of Kansas City Life are
dedicated to offering the Com-
pany’s shareholders, policyholders,
general agents and agents with
the superior products and quality
services needed to build a solid
financial plan.
So who are we? We are a united
Company, dedicated to the values
of honesty and integrity, sound
business practices and most of all
Security Assured. For more than
115 years, Kansas City Life has
built a foundation of success that is
well documented. Through eco-
nomic prosperity and challenges,
our promise is clear: We’ll be with
you … We’re Kansas City Life.
5
The Sales and Marketing Department provides the Company’s field force
with excellent marketing service and support to assist in providing Secu-
rity Assured to the Company’s policyholders. Representing the department
are five individuals whose combined 107 years of service to the Company
embody the mission of Security Assured. Pictured (from left): Cheryl
Genova, advanced sales underwriter; Dale French, senior application sys-
tems analyst; Leigh Ann Faherty, senior administrative assistant; Mary Jo
Olinger, manager, sales materials; and Jim Wilcox (seated), assistant vice
president, marketing services and product information.
Dale French:
19 years of helping agencies succeed
For almost 20 years, Dale French,
senior application systems analyst, Sales
and Marketing, has been helping Kansas
City Life Insurance Company’s general
agents and agents successfully grow their
businesses. In fact, Dale manages all the
sales-based production data for each field force member under contract
with the Company. By tracking production, he is able to assist agents in
planning for the future and setting long-term production goals.
More importantly, Dale is not only supporting the Company’s field
force in their efforts to grow their businesses, he believes he is helping
policyholders gain financial security.
“Indirectly, I feel like I’ve helped our policyholders achieve the life
insurance and financial protection they need,” he says. “That definitely
gives me a sense of accomplishment.”
Since Dale joined Kansas City Life in 1992, he has witnessed first-
hand how the Company has grown in its commitment to provide Secu-
rity Assured to its policyholders. This dedication has always impressed
him, especially during the recent economic challenges.
“Witnessing the repercussions of the economic downturn has
helped me appreciate what it means to work for a stable company like
Kansas City Life. I will always value that.”
The Kansas City Life Group of Companies
Kansas City Life Insurance Company
Since 1895, Kansas City Life Insurance Company (www.kclife.com) has been dedi-
cated to the present and future financial security of its customers. Kansas City Life
and its subsidiaries provide financial services, including insurance and investments,
to consumers throughout 48 states and the District of Columbia.* More than 2,200
general agents and agents serve individuals, families, small businesses and corpora-
tions with a diverse range of products including universal life, term life, whole life,
variable life insurance,* variable annuities,* fixed deferred annuities and group prod-
ucts. Kansas City Life has been providing Security Assured for more than 115 years.
Old American Insurance Company
Since 1939, the mission of Old American Insurance Company (www.oaic.com) has
been to provide peace of mind to the senior market and, in turn, enhance the quality
of life for policyholders and their beneficiaries. Agents assist individuals ages 50 – 85
through final arrangements planning, charitable giving life insurance, and Social
Security and retirement income replacement insurance. In addition, Old American
began targeting individuals ages 20 to 65 in 2009 with its Level Term 20 life insur-
ance product. The subsidiary operates in 46 states and the District of Columbia.
Sunset Financial Services Inc.*
Sunset Financial Services (www.sunsetfinancial.com) is a full-service brokerage firm
and registered investment advisor. Sunset Financial Services’ registered representatives
are also licensed with Kansas City Life. Investment options include variable products,
mutual funds, stocks and bonds, money market funds, CDs and asset management
products.
Sunset Life Insurance Company of America
Sunset Life (www.sunsetlife.com) was originally founded in 1937 in Olympia, Wash.
Kansas City Life purchased Sunset Life in 1974 and its operations were consolidated
into the Company’s Home Office in 1999. The Sunset Life sales force was integrated
into the Kansas City Life sales force in 2006.
Financial Ratings, evaluated by A.M. Best
Kansas City Life Insurance Company – A (Excellent; Stable Outlook)
Old American Insurance Company – B++ (Good; Positive Outlook)
Sunset Life Insurance Company – A (Excellent; Stable Outlook)
These ratings represent A.M. Best’s opinion of the financial strength and stability of
Kansas City Life, Old American and Sunset Life Insurance Companies and each com-
pany’s ability to meet ongoing obligations to policyholders, as of June 2010.
There are 15 financial strength ratings offered by A.M Best, ranging from A++ (superior)
to F (in liquidation).
Please refer to the Company’s Form 10-K and Proxy Statement as filed
with the Securities and Exchange Commission (SEC).
4
*Securities are distributed through Sunset Financial Services Inc., 3520 Broadway,
Kansas City, MO 64111, 816-753-7000. Member FINRA and SIPC.
Senior Officers
Kansas City Life
Insurance Company
R. Philip Bixby
President, Chief Executive Officer and
Chairman of the Board
Walter E. Bixby, LLIF
Vice Chairman of the Board
Kansas City Life Insurance Company
President
Old American Insurance Company
Charles R. Duffy Jr., FLMI
Senior Vice President, Operations
Tracy W. Knapp
Senior Vice President, Finance
Donald E. Krebs, MSM, CLU, ChFC
Senior Vice President, Sales and Marketing
Mark A. Milton, FSA, CERA, MAAA
Senior Vice President and Actuary
William A. Schalekamp, JD, CLU, FLMI*
Senior Vice President,
General Counsel and Secretary
Gregory M. Galvin
Vice President, Real Estate
David A. Laird, CPA, FLMI
Vice President and Controller
Bruce G. Olberding
Vice President, Broker Dealer
Robert J. Milroy
Vice President, Underwriting and New
Richard D. Ropp, FLMI, ACS
Vice President, Customer Services and
Claims
Stephen E. Ropp
Vice President, Operations Services
J. Todd Salash
Vice President, Computer Information
Services
Dan L. Schick, CPA, CLU, FLMI
Vice President and Auditor
Jeffrey M. Seeman
Vice President, Group
Philip A. Williams, CFA
Vice President, Securities
Old American
Insurance Company
R. Philip Bixby
Chairman of the Board
Walter E. Bixby, LLIF
President
John C. Alderton
Vice President, Sales
Business
Richard D. Ropp, FLMI, ACS
Vice President, Customer Services and
Claims
Sunset Life Insurance
Company of America
R. Philip Bixby
President, Chairman of the Board
Walter E. Bixby, LLIF
Vice Chairman of the Board
Daryl D. Jensen, MAAA, FLMI**
Vice Chairman of the Board
Donald E. Krebs, MSM, CLU, ChFC
Vice President, Sales and Marketing
David A. Laird, CPA, FLMI
Vice President and Controller
Robert J. Milroy
Vice President, Insurance Services and
Assistant Secretary
Mark A. Milton, FSA, CERA, MAAA
Vice President and Actuary
Richard D. Ropp, FLMI, ACS
Vice President, Policy Administration
A. Craig Mason, Jr.
Vice President, General Counsel and
Secretary
Gary K. Hoffman, JD, CLU, FLMI
Vice President, Associate General Counsel
and Secretary
Matthew R. O’Connor
Secretary
Robert J. Milroy
Vice President, Underwriting and New
Tracy W. Knapp
Chief Financial Officer
*William A. Schalekamp retired from the
Company in October 2010
David A. Laird, CPA, FLMI
Vice President and Controller
**Daryl D. Jensen retired as Sunset Life Vice
Chairman in April 2010
Business
John L. Nogalski, CPA, FLMI
Vice President, Taxes
Kansas City Life
Insurance Company
Old American Insurance Company
Sunset Life Insurance
Company of America
Sunset Financial Services Inc.
Home Office
3520 Broadway
Kansas City, MO 64111
Phone: 816-753-7000
Visit us on the Internet:
www.kclife.com
www.oaic.com
www.sunsetlife.com
www.sunsetfinancial.com
13
Board of Directors – Kansas City Life Insurance Company
R. Philip Bixby
President, Chief Executive Officer and
Chairman of the Board
Kansas City Life Insurance Company
Kansas City, Missouri
John C. Cozad
President
Cozad Company, LLC
Platte City, Missouri
Richard L. Finn
Walter E. Bixby, LLIF
Vice Chairman of the Board
Kansas City Life Insurance Company
President
Retired Senior Vice President, Finance
Kansas City Life Insurance Company
Kansas City, Missouri
Cecil R. Miller, CPA
Retired Partner
KPMG LLP
Kansas City, Missouri
Mark A. Milton, FSA, CERA, MAAA
Senior Vice President and Actuary
Kansas City Life Insurance Company
Kansas City, Missouri
Old American Insurance Company
Nancy Bixby Hudson
Bradford T. Nordholm
Kansas City, Missouri
Kevin G. Barth
President and Chief Operating Officer
Commerce Bank
Kansas City, Missouri
William R. Blessing
Retired Senior Vice President, Corporate
Strategy and Development
Embarq
Overland Park, Kansas
Michael Braude
Retired President and
Chief Executive Officer
Kansas City Board of Trade
Kansas City, Missouri
Investor
Lander, Wyoming
Daryl D. Jensen, MAAA, FLMI
Retired Vice President of
Finance
Western Institutional Review Board
Olympia, Washington
Retired President and Vice Chairman
of the Board
Sunset Life Insurance Company of
America
Kansas City, Missouri
Tracy W. Knapp
Senior Vice President, Finance
Kansas City Life Insurance Company
Kansas City, Missouri
Chief Executive Officer
Starwood Energy Group Global LLC
Greenwich, Connecticut
William A. Schalekamp, JD, CLU, FLMI
Retired Senior Vice President,
General Counsel and Secretary
Kansas City Life Insurance Company
Kansas City, Missouri
and variable universal life products increased $3.7 million or 33% for the year compared
to the prior year. The growth in overall new life insurance sales was primarily attributable
to positive results being attained from the Company’s recruiting efforts and the improved
productivity of general agents and agents, along with an improving economy.
The Company experienced realized investment gains of $0.5 million for the year. This
represented significant improvement from the realized losses recognized one year ear-
lier. The low interest rate and improving overall credit environment resulted in improved
fair values within the Company’s investment portfolio and further strengthened the Com-
pany’s capital position. Specifically, the investment portfolio had a net unrealized gain
position of $110.2 million at December 31, 2010, an improvement of $110.0 million
from December 31, 2009. The Company’s stockholders’ equity improved 8% during the
year, further strengthening the Company’s capital position.
In addition, the Company continues to focus resources on the training and development
of its field force. Specifically, the Company places a priority on recruiting new general
agents and agents, both of which are essential for the Company’s long-term success.
While many in the industry have abandoned the agency career-based system, the Com-
pany believes this system sets it apart from competitors in the life insurance industry.
During 2010, 30 new general agents joined the Company as valued partners.
The Company believes that its relationships with its shareholders, policyholders, general
agents and agents, and associates are the foundation from which the Company builds its
future. Kansas City Life continues to provide competitive products, superior customer
service, financial strength, specialized training and superior sales and marketing support.
Kansas City Life is a company that has proven its financial strength over time and contin-
ues to provide value-oriented products, throughout economic cycles.
R. Philip Bixby
President, Chief Executive Officer and
Chairman of the Board
14
Board of Directors
3
Message from the President
Kansas City Life Insurance Company has faced a vari-
ety of opportunities and challenges during its 115-year
history. While the economy generally improved dur-
ing 2010, many of the issues that were evident in 2009
remained. The low interest rate environment continues
to present special challenges to the financial industry
and, in particular, the insurance sector. However, Kan-
sas City Life has responded to this adversity by staying
focused on making the best decisions for the long term
and its fundamental mission of providing Security
Assured to its policyholders.
The Company is focused on providing consumers with
the products they need to help assure financial security.
In 2010, the Lifetime Income Rider was introduced in
response to consumer demand. As many consumers watched their retirement portfolio
dwindle during the recent recession, this new product rider was specifically designed to
provide guaranteed income for life and income flexibility from a Kansas City Life fixed
annuity. Moving forward, the Company will explore additional products and riders to
enhance its already strong portfolio.
The Company recorded net income for 2010 of $22.3 million or $1.95 per share, an
increase from $10.7 million or $0.93 per share for the same period in 2009. The changes
that impacted the year included a $10.6 million improvement in realized investment
gains and losses, growth in insurance revenues, lower amortization of deferred acquisi-
tion costs and reduced operating expenses. Partially offsetting these improvements was an
increase in policyholder benefits.
Total life insurance premiums increased $2.5 million or 2% for the year compared to the
prior year, as new life insurance premiums increased $2.3 million or 16%. The growth
was driven by an increase of 29% in life insurance premiums from new sales in the Old
American segment. In addition, total life insurance premiums improved from increases in
renewal premiums on individual life insurance products. Deposits from new universal life
Stockholder Information
CORPORATE HEADQUARTERS
Kansas City Life Insurance Company
3520 Broadway
Post Office Box 219139
Kansas City, Missouri 64121-9139
Telephone: 816-753-7000
Fax: 816-753-4902
Internet: http://www.kclife.com
E-mail: kclife@kclife.com
NOTICE OF ANNUAL MEETING
The annual meeting of stockholders will be held at 9 a.m. on Thursday, April 21, 2011 at Kansas City
Life Insurance Company’s corporate headquarters.
TRANSFER AGENT
Janice Poe, Stock Agent and Assistant Secretary
Kansas City Life Insurance Company
Post Office Box 219139
Kansas City, Missouri 64121-9139
10-K REQUEST
Stockholders may request a free copy of Kansas City Life’s Form 10-K, as filed with the Securities and
Exchange Commission, by writing to Secretary, Kansas City Life Insurance Company.
SECURITY HOLDERS
As of Jan. 31, 2011, Kansas City Life had approximately 2,500 security holders, including individual
participants in security position listings.
Please refer to the Company’s Form 10-K and Proxy Statement as filed with the Secu-
rities and Exchange Commission (SEC).
Stock and Dividend information
Stock and Dividend Information
The following table presents the high and low prices for the Company’s common stock for the periods
indicated and the dividends declared per share and paid during such periods. The Company’s common
stock is traded on the NASDAQ Capital Market under the symbol “KCLI”.
2010
First quarter
Second quarter
Third quarter
Fourth quarter
2009
First quarter
Second quarter
Third quarter
Fourth quarter
High
Low
$
33.50
35.85
32.63
33.77
$
24.86
27.84
28.58
30.42
$
44.63
40.22
37.75
33.31
$
15.20
19.70
25.39
25.00
Dividend
Paid
$
$
$
$
0.27
0.27
0.27
0.27
1.08
0.27
0.27
0.27
0.27
1.08
A quarterly dividend of $0.27 per share was paid Feb. 9, 2011.
NASDAQ market quotations are compiled according to Company records and may reflect inter-dealer
prices, without markup, markdown or commission and may not necessarily represent actual transac-
tions.
2
15
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KANSAS CITY LIFE INSURANCE COMPANY
HOME OFFICE: KANSAS CITY, MISSOURI
2010 Annual Report