Kansas City Life Insurance Company

KANSAS CITY LIFE INSURANCE COMPANY
A Missouri Corporation
3520 Broadway
Kansas City, MO 64111-2565
Telephone: (816) 753-7000
www.kclife.com
Investor Relations: Craig.Mason@kclife.com
SIC Code: 6311
ANNUAL REPORT
For the Period Ending December 31, 2022
(the "Reporting Period")
The number of shares outstanding of our Common Stock was 9,683,414 as of December 31, 2022 (the end of reporting 
period) 
The number of shares outstanding of our Common Stock was 9,683,414 as of September 30, 2022 (the end of previous 
reporting period) 
Indicate by check mark whether the company is a shell company (as defined in Rule 405 of the Securities Act of 1933 and 
Rule 12b-2 of the Exchange Act of 1934):
Yes: o No: x
Indicate by check mark whether the company’s shell status has changed since the previous reporting period: 
Yes: o No: x
Indicate by check mark whether a Change in Control of the company has occurred over this reporting period: 
Yes: o No: x

KANSAS CITY LIFE INSURANCE COMPANY
TABLE OF CONTENTS
Financial Information    .............................................................................................................................................................. 3
Consolidated Balance Sheets    ................................................................................................................................................ 3
Consolidated Statements of Comprehensive Income    ........................................................................................................... 4
Consolidated Statements of Stockholders' Equity    ................................................................................................................ 5
Consolidated Statements of Cash Flows    .............................................................................................................................. 6
Notes to Consolidated Financial Statements   ........................................................................................................................ 8
Independent Auditors' Report   ............................................................................................................................................... 72
Management's Discussion and Analysis of Financial Condition and Results of Operations   .................................................. 74
Risk Factors   ............................................................................................................................................................................. 87

Financial Information
Amounts in thousands, except share data, security counts, claim counts, or as otherwise noted.
Kansas City Life Insurance Company
Consolidated Balance Sheets
December 31,
2022
2021
ASSETS
Investments:
Fixed maturity securities available for sale, at fair value
    (amortized cost: 2022 - $2,475,443; 2021 - $2,894,877)
$ 
2,204,819 
$ 
3,088,197 
Equity securities, at fair value 
    (cost: 2022 - $1,699; 2021 - $3,097)
 
1,918 
 
3,676 
Mortgage loans
 
591,928 
 
596,037 
Real estate
 
141,649 
 
142,278 
Policy loans
 
82,739 
 
82,060 
Short-term investments
 
58,497 
 
74,501 
Other investments
 
18,749 
 
12,840 
Total investments
 
3,100,299 
 
3,999,589 
Cash
 
7,768 
 
5,419 
Accrued investment income
 
27,516 
 
30,298 
Deferred acquisition costs
 
327,544 
 
292,027 
Reinsurance recoverables
 
389,611 
 
399,951 
Deposit asset on reinsurance
 
484,410 
 
— 
Other assets
 
246,420 
 
201,170 
Separate account assets
 
381,581 
 
504,976 
Total assets
$ 
4,965,149 
$ 
5,433,430 
LIABILITIES
Future policy benefits
$ 
1,388,924 
$ 
1,397,111 
Policyholder account balances
 
2,280,917 
 
2,247,392 
Policy and contract claims
 
56,975 
 
69,787 
Other policyholder funds
 
204,788 
 
185,713 
Other liabilities
 
160,271 
 
198,017 
Separate account liabilities
 
381,581 
 
504,976 
Total liabilities
 
4,473,456 
 
4,602,996 
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
 
41,025 
 
41,025 
Retained earnings
 
910,438 
 
933,338 
Accumulated other comprehensive income (loss)
 
(241,590) 
 
74,251 
Treasury stock, at cost (2022 and 2021 - 8,813,266 shares)
 
(241,301) 
 
(241,301) 
Total stockholders’ equity
 
491,693 
 
830,434 
Total liabilities and stockholders’ equity
$ 
4,965,149 
$ 
5,433,430 
See accompanying Notes to Consolidated Financial Statements
3

Year Ended December 31,
2022
2021
2020
REVENUES
Insurance revenues:
Net premiums
$ 
208,608 
$ 
208,864 
$ 
223,756 
Contract charges
 
124,044 
 
121,803 
 
126,722 
Total insurance revenues
 
332,652 
 
330,667 
 
350,478 
Investment revenues:
Net investment income
 
153,879 
 
142,468 
 
145,684 
Net investment gains (losses)
 
(16,643) 
 
25,417 
 
21,835 
Total investment revenues
 
137,236 
 
167,885 
 
167,519 
Other revenues
 
6,754 
 
12,760 
 
5,913 
Total revenues
 
476,642 
 
511,312 
 
523,910 
BENEFITS AND EXPENSES
Policyholder benefits
 
258,399 
 
280,886 
 
280,970 
Interest credited to policyholder account balances
 
72,974 
 
79,725 
 
78,792 
Amortization of deferred acquisition costs
 
40,593 
 
33,217 
 
42,141 
Operating expenses
 
125,433 
 
104,564 
 
106,093 
Total benefits and expenses
 
497,399 
 
498,392 
 
507,996 
Income (loss) before income tax expense (benefit)
 
(20,757) 
 
12,920 
 
15,914 
Income tax expense (benefit)
 
(4,539) 
 
2,216 
 
744 
NET INCOME (LOSS)
$ 
(16,218) 
$ 
10,704 
$ 
15,170 
COMPREHENSIVE INCOME (LOSS),
     NET OF TAXES
Changes in:
Net unrealized gains (losses) on
     securities available for sale
$ (366,516) 
$ (100,859) 
$ 
115,900 
Effect on deferred acquisition costs, value of business
     acquired, and deferred revenue liabilities
 
31,334 
 
7,946 
 
(7,809) 
Policyholder liabilities
 
26,765 
 
9,247 
 
(15,882) 
Benefit plan obligations
 
(7,424) 
 
5,115 
 
1,087 
Other comprehensive income (loss)
 
(315,841) 
 
(78,551) 
 
93,296 
COMPREHENSIVE INCOME (LOSS)
$ (332,059) 
$ 
(67,847) 
$ 
108,466 
Basic and diluted earnings per share:
Net income (loss)
$ 
(1.67) 
$ 
1.11 
$ 
1.57 
See accompanying Notes to Consolidated Financial Statements
Kansas City Life Insurance Company
Consolidated Statements of Comprehensive Income
4

Year Ended December 31,
2022
2021
2020
COMMON STOCK, beginning and end of year
$ 
23,121 
$ 
23,121 
$ 
23,121 
ADDITIONAL PAID IN CAPITAL, beginning and end of year
 
41,025 
 
41,025 
 
41,025 
RETAINED EARNINGS
Beginning of year
 
933,338 
 
933,092 
 
928,380 
Net income (loss)
 
(16,218) 
 
10,704 
 
15,170 
Stockholder dividends (2022 - $0.69 per share, 2021 and 2020 - $1.08 per
    share)
 
(6,682) 
 
(10,458) 
 
(10,458) 
End of year
 
910,438 
 
933,338 
 
933,092 
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Beginning of year
 
74,251 
 
152,802 
 
59,506 
Other comprehensive income (loss)
 
(315,841) 
 
(78,551) 
 
93,296 
End of year
 
(241,590) 
 
74,251 
 
152,802 
TREASURY STOCK, at cost, beginning and end of year
 
(241,301) 
 
(241,301) 
 
(241,301) 
TOTAL STOCKHOLDERS’ EQUITY
$ 
491,693 
$ 
830,434 
$ 
908,739 
See accompanying Notes to Consolidated Financial Statements
Kansas City Life Insurance Company
Consolidated Statements of Stockholders’ Equity
5

Year Ended December 31,
2022
2021
2020
OPERATING ACTIVITIES
Net income (loss)
$ 
(16,218) 
$ 
10,704 
$ 
15,170 
Adjustments to reconcile net income (loss) to net cash 
     provided by (used from) operating activities:
Amortization of investment premium and discount
 
2,837 
 
1,669 
 
1,978 
Depreciation and amortization
 
6,592 
 
7,967 
 
8,538 
Acquisition costs capitalized
 
(26,612) 
 
(38,239) 
 
(44,151) 
Amortization of deferred acquisition costs
 
40,593 
 
33,217 
 
42,141 
Net investment losses (gains)
 
16,643 
 
(25,417) 
 
(21,835) 
Gain on sale of subsidiary
 
— 
 
(5,500) 
 
— 
Changes in assets and liabilities:
Reinsurance recoverables
 
10,340 
 
(8,513) 
 
(12,667) 
Future policy benefits
 
24,861 
 
24,761 
 
33,050 
Policyholder account balances
 
(92,909) 
 
(42,995) 
 
(34,520) 
Income taxes payable and deferred
 
(7,304) 
 
(4,983) 
 
(2,923) 
Other, net
 
(13,154) 
 
1,010 
 
21,113 
Net cash provided (used)
 
(54,331) 
 
(46,319) 
 
5,894 
INVESTING ACTIVITIES
Purchases:
Fixed maturity securities
 
(441,308) 
 
(434,696) 
 
(344,098) 
Equity securities
 
(8) 
 
(259) 
 
(380) 
Mortgage loans
 
(69,974) 
 
(103,942) 
 
(109,060) 
Real estate
 
(2,733) 
 
(36,994) 
 
(2,610) 
Policy loans
 
(7,116) 
 
(8,754) 
 
(8,706) 
Other investments
 
(14,553) 
 
(5,828) 
 
(3,702) 
Property and equipment
 
(535) 
 
(628) 
 
(1,844) 
Sales or maturities, calls, and principal paydowns:
Fixed maturity securities
 
343,993 
 
308,361 
 
344,071 
Equity securities
 
2,000 
 
3,000 
 
5,000 
Mortgage loans
 
74,111 
 
109,546 
 
85,111 
Real estate
 
843 
 
72,439 
 
29,898 
Policy loans
 
6,437 
 
11,141 
 
11,758 
Other investments
 
3,639 
 
8,599 
 
4,204 
Property and equipment
 
25 
 
71 
 
25 
Net sales (purchases) of short-term investments
 
16,004 
 
41,616 
 
(43,690) 
Proceeds from sale of subsidiary
 
— 
 
28,468 
 
— 
Net cash used
 
(89,175) 
 
(7,860) 
 
(34,023) 
Kansas City Life Insurance Company
Consolidated Statements of Cash Flows
6

Year Ended December 31,
2022
2021
2020
FINANCING ACTIVITIES
Policyholder account balances - deposits
$ 
207,231 
$ 
215,598 
$ 
220,549 
Policyholder account balances - receipts from funding 
     agreement
 
70,000 
 
30,000 
 
— 
Withdrawals from policyholder account balances
 
(172,117) 
 
(192,709) 
 
(200,717) 
Change in deposit asset on reinsurance, net
 
45,799 
 
— 
 
— 
Net transfers from separate accounts
 
7,841 
 
7,320 
 
8,794 
Change in other deposits
 
(6,217) 
 
2,644 
 
2,930 
Cash dividends to stockholders
 
(6,682) 
 
(10,458) 
 
(10,458) 
Net cash provided
 
145,855 
 
52,395 
 
21,098 
Increase (decrease) in cash
 
2,349 
 
(1,784) 
 
(7,031) 
Cash at beginning of year
 
5,419 
 
7,203 
 
14,234 
Cash at end of year
$ 
7,768 
$ 
5,419 
$ 
7,203 
Non-Cash Activity
In 2022, we had a non-cash investing transaction that consisted of the receipt of a $0.6 million equity security and a $1.0 
million fixed maturity security in exchange for a $1.6 million fixed maturity security as a result of the Chapter 11 Bankruptcy 
of the issuer of one of our fixed maturity securities.  The new equity and fixed maturity securities were recorded at fair value, 
which equaled the fair value of the fixed maturity security that was extinguished.
In 2022, we entered into a reinsurance arrangement in the form of a deposit-type contract that resulted in the non-cash transfer 
of $493.9 million of fixed maturity securities and $516.2 million of policyholder account balance liabilities to a certified 
domestic reinsurer.  See the Business Changes section of Note 1 - Nature of Operations and Significant Accounting Policies for 
further information.
In 2022, we accrued $28.4 million in Other Liabilities in the Consolidated Balance Sheets related to a class action lawsuit.  See 
Note 20 - Commitments, Contingent Liabilities, Guarantees, and Indemnifications for further information.
See accompanying Notes to Consolidated Financial Statements
Kansas City Life Insurance Company
Consolidated Statements of Cash Flows
7

1. Nature of Operations and Significant Accounting Policies
Business
Kansas City Life Insurance Company is a Missouri-domiciled stock life insurance company which, with its subsidiaries, is 
licensed to sell insurance products in 49 states and the District of Columbia.  The consolidated entity (the Company) offers a 
diversified portfolio of individual insurance, annuity, and group life and health products through its life insurance companies.  
Kansas City Life Insurance Company (Kansas City Life) is the parent company.  Old American Insurance Company (Old 
American) and Grange Life Insurance Company (Grange Life) are wholly-owned insurance subsidiaries of Kansas City Life.  
Sunset Life Insurance Company of America (now Ibexis Life & Annuity Insurance Company) was an insurance subsidiary that 
was wholly-owned by the Company until it was sold on November 1, 2021 - see Business Changes section below.  The 
Company also has non-insurance subsidiaries that individually and collectively are not material.  The terms "the Company," 
"we," "us," and "our" are used in these consolidated financial statements to refer to Kansas City Life and its subsidiaries.    
We have three reportable business segments, which are defined based on the nature of the products and services offered:  
Individual Insurance, Group Insurance, and Old American.  For additional information on our segments, please see Note 17 - 
Segment Information.
Basis of Presentation
The consolidated financial statements and the accompanying notes to the consolidated financial statements have been prepared 
in accordance with accounting principles generally accepted in the United States of America (GAAP) and include the accounts 
of Kansas City Life and its subsidiaries.  Significant intercompany transactions have been eliminated in consolidation and 
certain immaterial reclassifications have been made to prior period results to conform with the current period’s presentation.
Current Economic Environment
The economic environment continues to be shaped by lingering effects of COVID-19, including ongoing supply chain 
disruptions and an under supply of labor, due to early retirements, lower rates of immigration and a slow recovery of labor 
participation rates.  Additionally, the Russia/Ukraine War has caused oil, gas, and agricultural product supply disruptions.  
Inflation jumped significantly due to the supply chain disruptions and under supply of labor with year-over-year CPI (consumer 
price index) and Core PCE (personal consumption expenditures) peaking in 2022 at 9.1% and 5.4%, respectively.  In response, 
Global Central Banks increased rates and initiated quantitative tightening, with the Federal Reserve raising its benchmark 
overnight rate by 425 basis points (bps) in 2022.  The bond market responded with the 10-year Treasury yield increasing by 236 
bps from 1.51% to 3.87% in 2022.  The jump in rates has impacted the economy by slowing growth and increasing the risk of 
recession.  The investment environment has been both positively and negatively impacted.  While it has created a better 
environment for reinvestment into fixed income assets at higher yields, it has also resulted in a significant decline in the market 
value of existing fixed income assets.  Additionally, if the economy experiences a “hard landing” and enters a recession, risk of 
asset impairments, defaults, and delinquencies will increase.
Business Changes
On May 25, 2022, retroactive to April 1, 2022, we entered into a reinsurance arrangement whereby we reinsured a sizeable 
block of fixed annuity contracts to a certified domestic reinsurer.  This closed block of contracts reflected business issued prior 
to 2015 and consisted entirely of higher guaranteed interest rate products.  We are accounting for this transaction as a deposit-
type contract.  The contract reinsured $516.2 million in policyholder account balance liabilities in exchange for fixed maturity 
securities and cash, less deferred revenue.  We immediately recognized $11.6 million of certain non-refundable premiums 
associated with the transaction in investment income.  The remaining deferred revenue will be amortized in future periods.  The 
net consideration transferred to the reinsurer was $493.9 million.  This resulted in recognizing a deposit asset on reinsurance of 
$516.2 million at April 1, 2022.  Fixed maturity securities were transferred at market value as of the closing date of the 
transaction, resulting in a pre-tax net realized investment loss of $12.3 million.  We will continue to administer this business on 
an ongoing basis, and we will receive an ongoing expense allowance associated with these efforts.  For additional information 
on this reinsurance arrangement, please see Note 14 - Reinsurance.
In 2021, we sold 100% of the capital and surplus of Sunset Life (now Ibexis Life & Annuity Insurance Company) to Bona 
Holdings, LLC for $29.5 million, resulting in a net gain of approximately $5.5 million.  In addition, we received $1.0 million 
for providing certain transition support services associated with this transaction.  
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements
8

Use of Estimates
The preparation of the consolidated financial statements requires the Company's management to make estimates and 
assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the 
date of the consolidated financial statements, and the reported amounts of revenue and expenses during the period.  These 
estimates are inherently subject to change and actual results could differ from these estimates.  Significant estimates required in 
the preparation of the consolidated financial statements include the fair value of invested assets, deferred acquisition costs 
(DAC), deferred income taxes, goodwill and other intangibles, value of business acquired (VOBA), deferred revenue liability 
(DRL), policyholder account balances, future policy benefits, policy and contract claim liabilities, reinsurance, and pension and 
other postemployment benefits.
Significant Accounting Policies
Investments
Valuation of Investments and Other-than-Temporary Impairments
Our principal investments are in fixed maturity securities, mortgage loans, and real estate; all of which are exposed to at least 
four primary sources of investment risk, including: credit, interest rate, liquidity, and inflation.  
Fixed maturity securities, which are all classified as available for sale, are carried at fair value in the Consolidated Balance 
Sheets, with unrealized gains or losses recorded in Accumulated Other Comprehensive Income (Loss).  The unrealized gains or 
losses are recorded net of the adjustment to policyholder liabilities, DAC, VOBA, and DRL, to reflect what would have been 
earned had those gains or losses been realized and the proceeds reinvested.  The adjustments to DAC, VOBA, and DRL 
represent changes in the amortization that would have been required as a charge or credit to income had such unrealized 
amounts been realized.  The adjustments to policyholder liabilities represent the increase from using a discount rate that would 
have been required if such unrealized gains or losses had been realized and the proceeds reinvested at current market interest 
rates, which were different from the then-current effective portfolio rate.  
The amortized cost of a security is adjusted for declines in value that are determined to be other-than-temporary.  Other-than-
temporary impairment losses are reported as a component of investment revenues in the Consolidated Statements of 
Comprehensive Income, which also presents the amount of non-credit impairment losses for certain fixed maturity securities 
that are reported in Accumulated Other Comprehensive Income (Loss).  See Note 3 - Investments for additional discussion of 
our considerations related to other-than-temporary impairments.  For additional information regarding fair value, please see 
Note 4 - Fair Value Measurements.
Equity securities are carried at fair value.  Changes in the fair value of equity securities are recognized through net investment 
gains (losses) in the Consolidated Statements of Comprehensive Income.
Mortgage loans are stated at cost, adjusted for amortization of premium and accrual of discount, less an allowance for loan 
losses.  A loan is considered impaired if it is probable that all contractual amounts due will not be collected.  The allowance for 
loan losses is maintained at a level believed by management to be adequate to absorb potential future incurred credit losses.  
Management’s periodic evaluation and assessment of the adequacy of the allowance is based on known and inherent risks in the 
portfolio, historical and industry data, current economic conditions, and other relevant factors, along with risks related to 
specific loans.  Loans in foreclosure, loans considered to be impaired, and loans with amounts past due 90 days or more are 
placed on non-accrual status.
Real estate consists of directly owned investments and real estate joint ventures.  Real estate that is directly owned is carried at 
depreciated cost.  Real estate joint ventures consist primarily of office buildings, industrial warehouses, unimproved land for 
future development, and affordable housing real estate joint ventures.  Real estate joint ventures are consolidated when 
required.  The initial cost of the non-consolidated affordable housing real estate joint ventures is amortized in proportion to the 
tax credits and other tax benefits received and the net investment performance is recognized in the Consolidated Statements of 
Comprehensive Income as a component of Income Tax Expense.  The investments in other non-consolidated real estate joint 
ventures are recorded using the equity method of accounting, in which the initial cost of the investment is adjusted for earnings 
and cash contributions or distributions.
Policy loans are carried at their outstanding principal amount. 
Short-term investments include highly-liquid investments in institutional money market funds that are carried at net asset value 
(NAV).
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements
9

The Company has hedge positions classified as derivatives that are included in Other Investments in the Consolidated Balance 
Sheets.  These derivative assets are recorded at fair value and are established in relation to the Company's indexed universal life 
portfolio.  The index credit portion of the reserves associated with the indexed universal life products are considered to be 
embedded derivatives and are accounted for at fair value and are included in Policyholder Account Balances in the 
Consolidated Balance Sheets.  The value of the reserves will fluctuate depending on market conditions.  However, this 
fluctuation is largely offset by a corresponding change in the realized gains or losses on these derivatives.  Changes in market 
values can result in significant fluctuations to realized gains and losses in the Consolidated Statements of Comprehensive 
Income.
The Company includes investments in private equity security interests in Other Investments in the Consolidated Balance Sheets.  
The Company does not have a controlling interest and is not the primary beneficiary for these investments, which are in the 
form of limited partnerships.  As a result, the investments are accounted for using the equity method of accounting to determine 
the carrying value.  Adjustments to the carrying value reflect the pro rata ownership percentage of the operating results, as 
indicated by the net asset value in the financial statements of the limited partnership, which are reported on a three-month lag. 
The proportionate share of limited partnership income is reported as a component of Net Investment Income in the 
Consolidated Statements of Comprehensive Income.
Investment Income
Investment income is recognized when earned.  Premiums and discounts on fixed maturity securities are amortized over the life 
of the related security as an adjustment to yield using the effective interest method, with the exception of premiums on callable 
fixed maturity securities, which are amortized to the earliest call date.   
Realized Gains (Losses)
We realize investment gains and losses from several sources, including write-downs of investments, the change in the 
allowance for mortgage loan losses, sales of investment securities and real estate, and the change in fair value of equity 
securities and derivative instruments. 
Future Policy Benefits
We establish liabilities for amounts payable under insurance policies, including traditional life insurance, immediate annuities 
with life contingencies, supplementary contracts with life contingencies, group life insurance, and accident and health 
insurance.  These liabilities originate from new premiums and conversions from other products and are generally payable over 
an extended period of time.  
Liabilities for future policy benefits of traditional life insurance have been computed by a net level premium method based upon 
estimates at the time of issue or at the time of acquisition for investment yields, mortality, and withdrawals.  These estimates 
include provisions for experience less favorable than initially expected.  Mortality assumptions are based on Company 
experience expressed as a percentage of standard mortality tables.  
Liabilities for future policy benefits of immediate annuities and supplementary contracts with life contingencies are computed 
by calculating an actuarial present value of future policy benefits, based upon estimates for investment yields and mortality at 
the time of issue or at the time of acquisition.  
Liabilities for future policy benefits of accident and health insurance represent estimates of payments to be made on reported 
insurance claims, as well as claims incurred-but-not-reported (IBNR).  These liabilities are estimated using actuarial analyses 
and case basis evaluations that are based upon past claims experience, claim trends, and industry experience.
The following table provides detail about the composition of future policy benefits at December 31. 
2022
2021
Life insurance
$ 1,102,961 
$ 1,073,503 
Immediate annuities and supplementary
      contracts with life contingencies
 
259,715 
 
293,972 
Accident and health insurance
 
26,248 
 
29,636 
Future policy benefits
$ 1,388,924 
$ 1,397,111 
Policyholder Account Balances
Policyholder account balances are deposit-type contracts, including universal life insurance and fixed annuity contracts, and 
investment-type contracts.  Liabilities for policyholder account balances are included without reduction for potential surrender 
charges.  These liabilities originate from new deposits and conversions from other products.  Policyholder account balances are 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
10

equal to cumulative deposits, less contract charges and withdrawals, plus interest credited.  Deferred front-end contract charges 
reduce policyholder account balance liabilities and increase the other policyholder funds liability, and are amortized over the 
term of the policies in a manner similar to DAC, as discussed below.  Interest on policyholder account balances is credited as 
earned.
We periodically review our assumptions and perform sensitivity testing on these blocks of business to ensure we maintain the 
capacity to meet an increase in policyholder benefits, namely increased surrenders, policy loans, or other policyholder elective 
withdrawals.  If it is determined that our established reserves are not adequate, additional reserves will be added.
The Company has a collateralized advance funding agreement with the Federal Home Loan Bank of Des Moines (FHLB).  
Total obligations outstanding under this agreement were $100.0 million at December 31, 2022.  These obligations are also 
reported as Policyholder Account Balances in the Consolidated Balance Sheets.  Interest is credited based on variable rates set 
by the FHLB.  For additional information, please see Note 10 - Debt.
Crediting rates for universal life insurance and fixed annuity products ranged from 1.00% to 5.50% in 2022, 2021, and 2020.
The following table provides detail about the composition of policyholder account balances at December 31.  
2022
2021
Universal life insurance
$ 1,081,982 
$ 1,086,429 
Fixed annuities
 
1,041,914 
 
1,076,041 
Immediate annuities and supplementary
    contracts without life contingencies
 
56,407 
 
54,899 
Funding agreement
 
100,614 
 
30,023 
Policyholder account balances
$ 2,280,917 
$ 2,247,392 
Deferred Acquisition Costs
DAC, principally agent commissions and other selling and issue costs, which are related directly to the successful acquisition of 
new or renewal insurance contracts, are capitalized as incurred.  At least annually, we review our DAC capitalization policy and 
the specific items which are capitalized under existing guidance.  DAC is reviewed on an ongoing basis to evaluate whether the 
unamortized portion exceeds the expected recoverable amounts.  If it is determined from emerging experience that the premium 
margins or expected gross profits are insufficient to amortize DAC, the asset will be adjusted downward with the adjustment 
recorded as an expense in the current period.   
Policy acquisition costs associated with traditional life products are deferred and amortized over the premium paying period.  
Assumptions related to DAC on traditional life insurance products are typically determined at inception and remain unchanged 
with any future premium deficiency recorded first as a reduction of DAC.  
Policy acquisition costs that relate to interest sensitive and variable insurance products are deferred and amortized in relation to 
the estimated gross profits to be realized over the lives of the contracts.  Estimated gross profits for interest sensitive and 
variable insurance products are projected using assumptions as to net interest income, net realized investment gains and losses, 
fees, surrender charges, expenses, and mortality gains and losses, net of reinsurance.  At the issuance of policies, projections of 
estimated gross profits are made.  These projections are then replaced by actual gross profits over the lives of the policies. In 
addition to other factors, emerging experience may lead to a revised outlook for the remaining estimated gross profits.  
Accordingly, DAC may be recalculated (unlocked) using these new assumptions and any resulting adjustment is included in 
income in the period such an unlocking is deemed appropriate.  See the Unlocking and Refinements in Estimates section below 
for additional information. 
The DAC asset is adjusted to reflect the impact of unrealized gains and losses on fixed maturity securities available for sale, as 
described in the Investments section above.
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
11

The following table provides information about DAC at December 31. 
2022
2021
Balance at beginning of year
$ 
292,027 
$ 
276,425 
Capitalization of commissions and expenses   
 
26,612 
 
38,239 
Gross amortization
 
(51,669) 
 
(44,785) 
Accrual of interest
 
11,076 
 
11,568 
Change in DAC due to the change in unrealized 
     investment gains or (losses)
 
49,498 
 
10,580 
Balance at end of year
$ 
327,544 
$ 
292,027 
Effective January 1, 2022, Old American began reinsuring 50% of new business on selected products.  Effective October 1, 
2022, this agreement was modified to reinsure 75% of new business on selected products.  In 2022, the Company capitalized 
$7.3 million of ceding commission and amortized $0.6 million associated with this reinsurance agreement, thereby reducing 
DAC capitalization and amortization.
Value of Business Acquired
Under current guidance for business combinations, all assets and liabilities are reported at fair value at acquisition and an 
intangible asset or liability may result due to differences between fair value and consideration paid.  However, prior to the 
adoption of Accounting Standards Codification (ASC) No. 805 Business Combinations, a portion of the purchase price was 
allocated to a separately identifiable intangible asset, VOBA, when a new block of business was acquired or when an insurance 
company was purchased.  VOBA is established as the actuarially determined present value of future gross profits of the 
business acquired and is amortized with interest in proportion to future premium revenues or the expected future profits, 
depending on the type of business acquired.  VOBA is reported as a component of Other Assets with related amortization 
included in Operating Expenses.  Amortization of VOBA occurs with interest over the anticipated life of the underlying 
business to which it relates, initially 15 to 30 years.  The assumptions regarding future experience on interest sensitive business 
can affect the carrying value of VOBA, similar to DAC.  These assumptions include interest spreads, mortality, expense 
margins, and policy and premium persistency experience.  
The VOBA asset is adjusted to reflect the impact of unrealized gains and losses on fixed maturity securities available for sale, 
as described in the Investments section above.  
VOBA is reviewed on an ongoing basis to evaluate whether the unamortized portion exceeds the expected recoverable amounts.  
If it is determined from emerging experience that the premium margins or expected gross profits are insufficient to amortize 
VOBA, the asset will be adjusted downward with an expense recorded in the current period. 
The following table provides information about VOBA at December 31.
2022
2021
Balance at beginning of year
$ 
7,174 
$ 
7,249 
Gross amortization
 
(2,403) 
 
(3,045) 
Accrual of interest
 
611 
 
735 
Change in VOBA due to the change in unrealized 
     investment gains or (losses)
 
13,078 
 
2,235 
Balance at end of year
$ 
18,460 
$ 
7,174 
Interest accrued on the VOBA of one block of business was at the rates of 4.21% on the interest sensitive life block and 5.25% 
on the traditional life block, based upon the credited rates of the VOBA policies.  The VOBA on a separate acquired block of 
business used a 7.00% interest rate on the traditional life portion and a 5.40% interest rate on the interest sensitive portion, 
based upon rates appropriate at the time of acquisition. 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
12

Deferred Revenue Liabilities
Deferred revenue liabilities represent the capitalization of revenues received from contracts as compensation for services to be 
provided by the Company in future periods.  Deferred revenue liabilities are included in Other Policyholder Funds in the 
Consolidated Balance Sheets and totaled $72.6 million at December 31, 2022 and $45.1 million at December 31, 2021.  Such 
loads and charges are reported as unearned revenue in the period received and are subsequently recognized as income over the 
policy benefit period, using the same assumptions and factors used to amortize DAC.  Similar to DAC, these amounts are 
amortized in relation to estimated gross profits for interest sensitive and variable insurance products.  However, unlike DAC, 
the amortization of the DRL results in the recognition of revenue rather than expense.  The DRL is adjusted to reflect the impact 
of unrealized gains and losses on fixed maturity securities available for sale, as described in the Investments section above.  The 
DRL can be impacted by unlocking and refinements in estimates, as discussed in the following section.
Unlocking and Refinements in Estimates
Models and assumptions used to develop expected gross profits for interest sensitive and variable insurance products are 
reviewed at least annually based upon management’s current view of future events.  Key assumptions analyzed include net 
interest income, net realized investments gains and losses, fees, surrender charges, expenses, and mortality gains and losses, net 
of reinsurance.  Management’s view primarily reflects Company experience but can also reflect emerging trends within the 
industry.  Short-term deviations in experience affect the amortization of DAC, VOBA, and DRL in the period, but do not 
necessarily indicate that a change to the long-term assumptions of future experience is warranted.  If it is determined that it is 
appropriate to change the assumptions related to future experience, then an unlocking adjustment is recognized for the block of 
business being evaluated.  Certain assumptions, such as interest spreads and surrender rates, may be interrelated.  As such, 
unlocking adjustments often reflect revisions to multiple assumptions.  The DAC, VOBA, or DRL balance is immediately 
impacted by any assumption changes, with the change reflected through the Consolidated Statements of Comprehensive Income 
as an unlocking adjustment.  These adjustments can be positive or negative, and adjustments increasing the DAC asset are 
limited to amounts previously deferred plus interest accrued through the date of the adjustment.  
We also consider refinements in estimates due to improved capabilities resulting from administrative or actuarial system 
enhancements.  We consider such enhancements to determine whether and to what extent they are associated with prior periods 
or simply improvements in the projection of future expected gross profits due to improved functionality.  To the extent they 
represent such improvements, these items are applied to DAC, VOBA, and DRL in a manner similar to unlocking adjustments.  
No refinements in estimates occurred in 2022, 2021, or 2020.
The following table summarizes the effects of the unlocking of assumptions on interest sensitive products in the Consolidated 
Statements of Comprehensive Income for the years ended December 31.  Positive numbers are increases to income and negative 
numbers are reductions to income.   
DAC 
Amortization
VOBA 
Amortization
DRL 
Contract 
Charges
Net Impact 
to Pre-Tax 
Income
2022:
Unlocking
$ 
(1,744) 
$ 
(26) 
$ 
953 
$ 
(817) 
2021:
Unlocking
$ 
380 
$ 
(822) 
$ 
1,137 
$ 
695 
2020:
Unlocking
$ 
(5,219) 
$ 
(1,593) 
$ 
3,838 
$ 
(2,974) 
The unlocking in 2022, 2021, and 2020 primarily resulted from interest rate fluctuations and the impact of management actions 
in the various interest rate environments.  In addition, we recorded a $1.4 million reserve decrease in 2022, a $0.7 million 
reserve decrease in 2021, and a $0.4 million reserve increase in 2020 related to the impacts of unlocking. 
The impact to pre-tax income of all adjustments related to unlocking, including insurance revenues, amortization of DAC and 
VOBA, and policyholder benefits, was a $0.6 million increase in 2022, a $1.4 million increase in 2021, and a $3.4 million 
decrease in 2020.
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
13

Pensions and Other Postemployment Benefits (OPEB)
The measurement of pension and other postemployment benefit obligations and costs depends on a variety of assumptions.  
Changes in the valuation of pension obligations and assets supporting this obligation can significantly impact the funded status.  
Assumptions are made regarding the discount rate, expected long-term rate of return on plan assets, health care claim costs, 
health care cost trends, retirement rates, and mortality.  Generally, the discount rate, expected return on plan assets, and 
mortality tables have the most significant impact on the cost.  The components of benefit cost are included in Operating 
Expenses in the Consolidated Statements of Comprehensive Income.  See Note 12 - Pensions and Other Postemployment 
Benefits for further details.
Goodwill and Intangible Asset
We established goodwill from the acquisition of Grange Life.  The goodwill balance was $42.3 million at both December 31, 
2022 and December 31, 2021.  Goodwill is included in Other Assets in the Consolidated Balance Sheets.  Under GAAP, 
goodwill is assessed at least annually for impairment, rather than being amortized.  As a result of our impairment assessment, 
we determined that goodwill was not impaired at December 31, 2022 or December 31, 2021.
The acquisition of Grange Life generated an amortizable intangible asset, which is the difference between the fair value and 
book value of the net reserve liabilities acquired.  The intangible asset was valued at $17.7 million at December 31, 2022 and 
$18.4 million at December 31, 2021 and is included in Other Assets in the Consolidated Balance Sheets. 
Separate Accounts and Guaranteed Minimum Withdrawal Benefits (GMWB)
Separate account assets and liabilities arise from the sale of variable universal life insurance and variable annuity products.  The 
separate account represents funds segregated for the benefit of certain policyholders who bear the investment risk.  The assets 
are legally segregated and are not subject to claims which may arise from any other business of the Company.  The separate 
account assets and liabilities, which are equal, are recorded at fair value based upon the NAV of the underlying investment 
holdings as derived from closing prices on a national exchange or as provided by the issuer.  Policyholder account deposits and 
withdrawals, investment income, and realized investment gains and losses are excluded from the amounts reported in the 
Consolidated Statements of Comprehensive Income.  Revenues to the Company from separate accounts are derived from 
directly-issued policies and contracts, as well as reinsurance assumed business.  These revenues consist principally of contract 
charges, which include maintenance charges, administrative fees, and mortality and expense charges.  See Note 7 - Separate 
Accounts for further details.
We offer a GMWB rider that can be added to new or existing variable annuity contracts.  The rider provides an enhanced 
withdrawal benefit that guarantees a stream of income payments to an owner or annuitant, regardless of the contract account 
value.  The GMWB rider is included in Other Policyholder Funds in the Consolidated Balance Sheets.  The rider is considered 
to be a financial derivative and, as such, is accounted for at fair value.  The value of the rider will fluctuate depending on market 
conditions, but is principally impacted by stock market volatility, interest rates, and equity market returns.  The change in value 
could have a material impact on earnings.  See Note 4 - Fair Value Measurements and Note 7 - Separate Accounts for further 
details.
Reinsurance
Consistent with the general practice of the life insurance industry, we enter into traditional indemnity reinsurance agreements 
with other insurance companies to support sales of selected new products and the in force business.  We cede reinsurance in 
force on all of the following bases: automatic and facultative; yearly renewable term (YRT) and coinsurance; and excess and 
quota share basis.  
Future Policy Benefits are not reduced for reinsurance ceded in the Consolidated Balance Sheets.  A reinsurance recoverable is 
established for these items.  Reinsurance recoverables include amounts related to paid benefits and estimated amounts related to 
unpaid policy and contract claims, future policy benefits, and policyholder account balances.  All insurance related revenues, 
benefits, and expenses are reported net of reinsurance ceded in the Consolidated Statements of Comprehensive Income.  
We have three large reinsurance assumption arrangements.  We acquired a block of traditional life and universal life products in 
1997 through a 100% coinsurance and servicing arrangement.  These assumed policies and contracts are accounted for in a 
manner similar to that used for direct business.  We also acquired a block of variable universal life insurance policies and 
variable annuity contracts in 2013.  We receive fees based upon both specific transactions and the fund value of the block of 
policies, as provided under modified coinsurance transactions.  Also, as required under modified coinsurance transaction 
accounting, the separate account fund balances are not recorded as separate accounts on our financial statements.  The 
coinsurance portion of the transaction, which is invested in our fixed funds, is included in Future Policy Benefits in the 
Consolidated Balance Sheets.  We record these fixed fund accounts as a separate block under our general accounts.  We receive 
fees on both the separate accounts and the fixed fund accounts.  In addition, we completed a 100% assumption reinsurance 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
14

transaction in 2020 with Sunset Life.  Under GAAP guidance, this transaction was realized at the conclusion of the close of the 
sale of Sunset Life on November 1, 2021.  
We reinsured a block of fixed annuity business to a certified domestic reinsurer, effective April 1, 2022.  We determined that 
this arrangement does not expose the reinsurer to a significant loss from insurance risk. Therefore, we have recognized the 
reinsurance arrangement using the deposit-type method of accounting.  The reserve credit transferred to the reinsurer is reported 
as Deposit Asset on Reinsurance in the Consolidated Balance Sheets.  As amounts are received or paid, consistent with the 
underlying reinsured contracts, the Deposit Asset on Reinsurance is adjusted.  The Deposit Asset on Reinsurance is also 
accreted to the estimated ultimate cash flows using the interest method and the adjustment is reported as Net Investment Income 
in the Consolidated Statements of Comprehensive Income.
See Note 14 - Reinsurance for additional information pertaining to reinsurance.
Property and Equipment
Property and equipment are stated at cost, depreciated over estimated useful lives using the straight-line method, and are 
included in Other Assets in the Consolidated Balance Sheets.  The home office complex is depreciated over 10 years to 50 years 
and furniture and equipment is depreciated over 3 years to 10 years.  The following table provides information about property 
and equipment at December 31.
2022
2021
Land
$ 
766 
$ 
766 
Home office complex
 
21,824 
 
21,798 
Furniture and equipment
 
36,797 
 
36,313 
 
59,387 
 
58,877 
Accumulated depreciation
 
(45,378) 
 
(42,528) 
Property and equipment
$ 
14,009 
$ 
16,349 
Depreciation expense totaled $2.9 million during 2022 and $3.7 million during both 2021 and 2020. 
Recognition of Revenues
Premiums
Premiums for traditional life insurance products are reported as revenue when due.  Premiums for immediate annuities with life 
contingencies are reported as revenue when received.  Premiums on accident and health, disability, and dental insurance are 
reported as earned ratably over the contract period in proportion to the amount of insurance protection provided.  Premiums are 
reported net of reinsurance, as applicable.
Contract Charges
Contract charges consist of cost of insurance, expense loads, the amortization of unearned revenues, and surrender charges on 
policyholder account balances.  The timing of the recognition of these revenues is determined based on the nature of the charges 
and fees.  Policy charges for the cost of insurance and expense loads are assessed periodically and are recognized as revenue 
when assessed and earned.  Certain policy fees that represent compensation for services to be provided in the future are reported 
as unearned revenue and recognized over the periods benefited.  Surrender charges are determined based upon contractual terms 
and are recognized upon surrender of a contract.  Policyholder benefits include interest amounts credited to policyholder 
account balances and benefit claims incurred in excess of policyholder account balances during the period.
An additional component of contract charges is the recognition over time of the DRL for certain fixed and variable universal 
life policies.  This liability arises from front-end loads on such policies and is recognized into the Consolidated Statements of 
Comprehensive Income in a manner similar to the amortization of DAC.  If it is determined that it is appropriate to change the 
assumptions of future experience, then an unlocking adjustment is recognized for the block of business being evaluated.  See 
the Unlocking and Refinements in Estimates section above for additional information.
Deposits
Deposits related to universal life, fixed annuity contracts, and investment-type products are credited to policyholder account 
balances.  Deposits are not recorded as revenue and are shown as a Financing Activity in the Consolidated Statements of Cash 
Flows.  Revenues from such contracts consist of amounts assessed against policyholder account balances for mortality, policy 
administration, and surrender charges, and are recognized in the period in which the benefits and services are provided as 
Contract Charges in the Consolidated Statements of Comprehensive Income.
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
15

Revenues from Contracts with Customers
We have certain types of non-insurance and non-investment revenue from contracts with customers.  These revenues are 
recognized when obligations under the terms of the contract are satisfied.  The amount of revenue recognized reflects the 
consideration we expect to be entitled to in exchange for those services.  For these revenues, the performance obligation is 
fulfilled as services are rendered.  These revenues equaled less than 1% of our total revenues for the years ended December 31, 
2022 and December 31, 2021 and are not material to our consolidated financial statements.
Income Taxes
The Company and its subsidiaries file a consolidated federal income tax return that includes Kansas City Life, Old American, 
and non-life insurance companies.  Grange Life files a separate federal income tax return. 
Deferred income taxes are recorded based on the differences between the tax bases of assets and liabilities and the amounts at 
which they are reported in the consolidated financial statements.  Recorded amounts are adjusted to reflect changes in income 
tax rates and other tax law provisions as they become enacted.  The net deferred tax asset is included in Other Assets and the net 
deferred tax liability is included in Other Liabilities in the Consolidated Balance Sheets.  
Deferred income tax assets are subject to ongoing evaluation of whether such assets will be realized.  The ultimate realization of 
deferred income tax assets generally depends on the reversal of deferred tax liabilities and the generation of future taxable 
income and realized gains during the periods in which temporary differences become deductible.  Deferred income taxes 
include future deductible differences relating to unrealized losses on investment securities.  We evaluate the character and 
timing of unrealized gains and losses to determine whether future taxable amounts are sufficient to offset future deductible 
amounts.  A valuation allowance against deferred income tax assets may be required if future taxable income of an appropriate 
amount and character is not expected.
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
16

2. New Accounting Pronouncements
Accounting Pronouncements Adopted During 2023
In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13 
Measurement of Credit Losses on Financial Instruments.  Under this guidance, the incurred loss impairment methodology 
currently used for loans and other financial instruments will be replaced by a methodology that reflects expected credit losses 
and requires consideration of a broader range of reasonable and supportable information concerning credit loss estimates.  The 
measurement of expected credit losses will be based on current, historical, and forecasted information that impacts the 
collectability of the reported amount.  Any credit losses related to available for sale debt securities will be recorded through a 
valuation allowance that is established and adjusted over time.  The valuation allowance will be based on the probability of loss 
over the life of the instrument.  Our assets subject to this guidance include, but are not limited to, fixed maturity securities 
available for sale, mortgage loans, and reinsurance recoverables.  Additional disclosures will be required to provide information 
regarding significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting 
standards of an organization's portfolio.  The original effective date for this guidance, including subsequently issued 
amendments, for public business entities that are not U.S. Securities and Exchange Commission (SEC) filers was for fiscal 
years beginning after December 15, 2020 and interim periods within those fiscal years.  The FASB deferred the effective date 
of this guidance for public business entities that do not meet the definition of an SEC filer to fiscal years beginning after 
December 15, 2022, including interim periods within those fiscal years.  We adopted this guidance effective January 1, 2023, 
with no material impact to our consolidated financial statements.
Accounting Pronouncements Issued, Not Yet Adopted
In August 2018, the FASB issued ASU No. 2018-12 Targeted Improvements to the Accounting for Long-Duration Contracts.  
This update modifies the existing recognition, measurement, presentation, and disclosure requirements in ASC 944 Financial 
Services - Insurance (Topic 944).  
•
It requires insurance entities to (1) review and update the assumptions used to measure cash flows at least annually and 
(2) update the discount rate assumption at each reporting date.  The change in the liability estimate as a result of 
updating cash flow assumptions is required to be recognized in net income.  The change in the liability estimate as a 
result of updating the discount rate assumption is required to be recognized in other comprehensive income.  Expected 
future cash flows are required to be discounted at an upper-medium grade (low-credit-risk) fixed income instrument 
yield that maximizes the use of observable market inputs.
•
It simplifies the accounting for certain market-based options or guarantees associated with deposit contracts by 
requiring insurance entities to measure them at fair value.  The portion of any change in fair value attributable to a 
change in the instrument-specific credit risk is required to be recognized in other comprehensive income.  
•
It simplifies the amortization of deferred acquisition costs by requiring amortization on a constant level basis over the 
expected term of the related contracts.  Deferred acquisition costs are required to be written off for unexpected contract 
terminations but are not subject to an impairment test.  
•
It improves the effectiveness of the required disclosures.  It requires an insurance entity to provide disaggregated 
rollforwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, 
market risk benefits, separate account liabilities, and deferred acquisition costs.  It also requires disclosures regarding 
significant inputs, judgments, assumptions, and methods used in measurement, including changes in those inputs, 
judgments, and assumptions, and the effect of those changes on measurement.
The original effective date for this guidance was for fiscal years, and interim periods within those fiscal years, beginning after 
December 15, 2020.  The FASB deferred the effective date of this guidance to fiscal years beginning after December 15, 2024, 
and interim periods within fiscal years beginning after December 15, 2025.  We are currently evaluating this guidance.  
All other new accounting standards and updates of existing standards issued through the date of this filing were considered by 
management and did not relate to accounting policies and procedures pertinent to us at this time or were not expected to have a 
material impact to the consolidated financial statements.  
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
17

3. Investments
Fixed Maturity Securities
Securities by Asset Class
The following table provides amortized cost and fair value of fixed maturity securities by asset class at December 31, 2022.  We 
sold all of our corporate private-labeled residential mortgage-backed securities during 2022.   
Amortized 
Cost
Gross 
Unrealized
Fair 
Value
Gains
Losses
U.S. Treasury securities and 
     obligations of U.S. Government
$ 
108,928 
$ 
58 
$ 
6,147 
$ 
102,839 
Federal agency issued residential
      mortgage-backed securities 1
 
61,753 
 
113 
 
5,373 
 
56,493 
Subtotal
 
170,681 
 
171 
 
11,520 
 
159,332 
Corporate obligations:
Industrial
 
340,954 
 
1,116 
 
41,768 
 
300,302 
Energy
 
77,317 
 
905 
 
3,056 
 
75,166 
Communications and technology
 
179,731 
 
1,143 
 
21,158 
 
159,716 
Financial
 
400,705 
 
891 
 
51,941 
 
349,655 
Consumer
 
490,378 
 
416 
 
62,472 
 
428,322 
Public utilities
 
314,428 
 
1,079 
 
43,260 
 
272,247 
Subtotal
 
1,803,513 
 
5,550 
 
223,655 
 
1,585,408 
Municipal securities
 
275,726 
 
2,529 
 
28,429 
 
249,826 
Other
 
219,523 
 
36 
 
14,532 
 
205,027 
Redeemable preferred stocks
 
6,000 
 
— 
 
774 
 
5,226 
Total
$ 2,475,443 
$ 
8,286 
$ 
278,910 
$ 2,204,819 
1  Federal agency securities are not backed by the full faith and credit of the U.S. Government.
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
18

The following table provides amortized cost and fair value of fixed maturity securities by asset class at December 31, 2021. 
Amortized 
Cost
Gross 
Unrealized
Fair 
Value
Gains
Losses
U.S. Treasury securities and 
     obligations of U.S. Government
$ 
147,884 
$ 
12,696 
$ 
140 
$ 
160,440 
Federal agency issued residential
      mortgage-backed securities 1
 
70,838 
 
4,873 
 
13 
 
75,698 
Subtotal
 
218,722 
 
17,569 
 
153 
 
236,138 
Corporate obligations:
Industrial
 
414,391 
 
24,897 
 
1,570 
 
437,718 
Energy
 
146,181 
 
10,049 
 
39 
 
156,191 
Communications and technology
 
233,390 
 
17,208 
 
1,046 
 
249,552 
Financial
 
461,740 
 
27,974 
 
1,372 
 
488,342 
Consumer
 
647,861 
 
39,707 
 
3,107 
 
684,461 
Public utilities
 
348,164 
 
26,765 
 
1,578 
 
373,351 
Subtotal
 
2,251,727 
 
146,600 
 
8,712 
 
2,389,615 
Corporate private-labeled residential
      mortgage-backed securities
 
10,641 
 
1,403 
 
— 
 
12,044 
Municipal securities
 
232,470 
 
36,913 
 
428 
 
268,955 
Other
 
175,317 
 
1,162 
 
1,082 
 
175,397 
Redeemable preferred stocks
 
6,000 
 
48 
 
— 
 
6,048 
Total
$ 2,894,877 
$ 
203,695 
$ 
10,375 
$ 3,088,197 
1  Federal agency securities are not backed by the full faith and credit of the U.S. Government.
The following table provides information on fixed maturity securities available for sale by actual or equivalent Standard & 
Poor’s rating at December 31, 2022 with the percent of total unrealized losses identified.
Amortized 
Cost
Fair Value
Net 
Unrealized 
Losses
%
of Total
AAA
$ 
208,729 
$ 
194,405 
$ 
(14,324) 
 5 %
AA
 
546,851 
 
496,436 
 
(50,415) 
 19 %
A
 
802,345 
 
698,467 
 
(103,878) 
 38 %
BBB
 
896,722 
 
797,573 
 
(99,149) 
 37 %
Total investment grade
 
2,454,647 
 
2,186,881 
 
(267,766) 
 99 %
BB
 
14,643 
 
13,386 
 
(1,257) 
 — %
B and below
 
6,153 
 
4,552 
 
(1,601) 
 1 %
Total below investment grade
 
20,796 
 
17,938 
 
(2,858) 
 1 %
Total
$ 
2,475,443 
$ 
2,204,819 
$ 
(270,624) 
 100 %
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
19

The following table provides information on fixed maturity securities available for sale by actual or equivalent Standard & 
Poor’s rating at December 31, 2021 with the percent of total unrealized gains identified.
Amortized 
Cost
Fair Value
Net 
Unrealized 
Gains
%
of Total
AAA
$ 
183,920 
$ 
197,319 
$ 
13,399 
 7 %
AA
 
588,506 
 
641,837 
 
53,331 
 28 %
A
 
1,043,384 
 
1,114,086 
 
70,702 
 37 %
BBB
 
1,046,200 
 
1,100,183 
 
53,983 
 27 %
Total investment grade
 
2,862,010 
 
3,053,425 
 
191,415 
 99 %
BB
 
18,424 
 
18,720 
 
296 
 — %
B and below
 
14,443 
 
16,052 
 
1,609 
 1 %
Total below investment grade
 
32,867 
 
34,772 
 
1,905 
 1 %
Total
$ 
2,894,877 
$ 
3,088,197 
$ 
193,320 
 100 %
Contractual Maturities
The following table provides the distribution of maturities for fixed maturity securities available for sale.  Expected maturities 
may differ from these contractual maturities since issuers or borrowers may have the right to call or prepay obligations. 
December 31, 2022
December 31, 2021
Amortized 
Cost
Fair Value
Amortized 
Cost
Fair Value
Due in one year or less
$ 
90,979 
$ 
90,357 
$ 
121,297 
$ 
122,979 
Due after one year through five years
 
484,320 
 
465,698 
 
843,382 
 
893,131 
Due after five years through ten years
 
734,071 
 
653,998 
 
851,116 
 
904,165 
Due after ten years
 
1,036,509 
 
875,295 
 
918,209 
 
994,023 
Securities with variable principal payments  
123,564 
 
114,245 
 
154,873 
 
167,851 
Redeemable preferred stocks
 
6,000 
 
5,226 
 
6,000 
 
6,048 
Total
$ 2,475,443 
$ 2,204,819 
$ 2,894,877 
$ 3,088,197 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
20

Unrealized Losses on Investments
At the end of each quarter, all fixed maturity securities are reviewed to determine whether impairments exist and whether other-
than-temporary impairments should be recorded.  This quarterly process includes an assessment of the credit quality of each 
investment in the entire securities portfolio.  Additional reporting and review procedures are conducted for those securities 
where fair value is less than 90% of amortized cost.  A formal review document is prepared no less often than quarterly of all 
investments where fair value is less than 80% of amortized cost for six months or more and selected investments that have 
changed significantly from a previous period and that have a decline in fair value greater than 10% of amortized cost.
We consider relevant facts and circumstances in evaluating whether the impairment of a security is other-than-temporary.  
Relevant facts and circumstances considered include but are not limited to:
•
The current fair value of the security as compared to amortized cost;
•
The credit rating of the security;
•
The extent and the length of time the fair value has been below amortized cost;
•
The financial position of the issuer, including the current and future impact of any specific events, material 
declines in the issuer’s revenues, margins, cash positions, liquidity issues, asset quality, debt levels, and income 
results;
•
Significant management or organizational changes of the issuer;
•
Significant uncertainty regarding the issuer’s industry;
•
Violation of financial covenants;
•
Consideration of information or evidence that supports timely recovery;
•
The intent and ability to hold a security until it recovers in value;
•
Whether we intend to sell a fixed maturity security and whether it is more likely than not that we will be required 
to sell a fixed maturity security before recovery of the amortized cost basis; and
•
Other business factors related to the issuer’s industry.
To the extent we determine that a fixed maturity security is deemed to be other-than-temporarily impaired, the portion of the 
impairment that is deemed to be due to credit is charged to earnings in the Consolidated Statements of Comprehensive Income 
and the cost basis of the underlying investment is reduced.  The portion of such impairment that is determined to be non-credit-
related is reflected in Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss).
There are a number of significant risks and uncertainties inherent in the process of monitoring impairments, determining if an 
impairment is other-than-temporary, and determining the portion of an other-than-temporary impairment that is due to credit.  
These risks and uncertainties include but are not limited to:
•
The risk that our assessment of an issuer’s ability to meet all of its contractual obligations will change based on 
changes in the credit characteristics of that issuer;
•
The risk that the economic outlook will be worse than expected or have more of an impact on the issuer than 
anticipated;
•
The risk that the performance of the underlying collateral for securities could deteriorate in the future and credit 
enhancement levels and recovery values do not provide sufficient protection to contractual principal and interest;
•
The risk that fraudulent, inaccurate, or misleading information could be provided to our credit, investment, and 
accounting professionals who determine the fair value estimates and accounting treatment for securities;
•
The risk that actions of trustees, custodians, or other parties with interests in the security may have an unforeseen 
adverse impact on our investments;
•
The risk that new information obtained or changes in other facts and circumstances may lead us to change our 
intent to sell the security before it recovers in value;
•
The risk that facts and circumstances change such that it becomes more likely than not that we will be required to 
sell the investment before recovery of the amortized cost basis; and
•
The risk that the methodology or assumptions used to develop estimates of the portion of impairments due to 
credit prove, over time, to be inaccurate or insufficient.
Any of these situations could result in a charge to income in a future period.
Once a security is determined to have met certain of the criteria for consideration as being other-than-temporarily impaired, 
further information is gathered and evaluated pertaining to the particular security.  If the security is an unsecured obligation, the 
additional research is a top-down approach with particular emphasis on the likelihood of the issuer to meet the contractual terms 
of the obligation.  If the security is secured by an asset or guaranteed by another party, the value of the underlying secured asset 
or the financial ability of the third-party guarantor is evaluated as a secondary source of repayment.  Such research is based 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
21

upon a top-down approach, narrowing to the specific estimates of value and cash flow of the underlying secured asset or 
guarantor.  If the security is a collateralized obligation, such as a mortgage-backed or other asset-backed instrument, research is 
also conducted to obtain and analyze the performance of the collateral relative to expectations at the time of acquisition and 
with regard to projections for the future.  Such analyses are based upon historical results, trends, comparisons to collateral 
performance of similar securities, and analyses performed by third parties.  This information is used to develop projected cash 
flows that are compared to the amortized cost of the security.
We may selectively determine that we no longer intend to hold a specific issue to its maturity.  If we make this determination 
and the fair value is less than the cost basis, the investment is written down to the fair value and an other-than-temporary 
impairment is recorded.  Subsequently, we seek to obtain the best possible outcome available for this specific issue and record 
an investment gain or loss at the disposal date.  No impairments of this kind were recorded in the year ended December 31, 
2022.  The Company recorded a $0.5 million impairment of this kind in the year ended December 31, 2021.  No impairments of 
this kind were recorded in the year ended December 31, 2020.   
A discounted future cash flow calculation becomes the primary determinant of whether any portion and to what extent an 
unrealized loss is due to credit on loan-backed and similar asset-backed securities.  Such indications typically include below 
investment grade ratings and significant unrealized losses for an extended period of time, among other factors.  If an 
impairment is deemed necessary, it is recognized as a realized loss in the Consolidated Statements of Comprehensive Income 
and the carrying value of the security is written down by the same amount.  The portion of an impairment that is determined not 
to be due to credit is recorded as a component of Accumulated Other Comprehensive Income (Loss) in the Consolidated 
Balance Sheets.  We identified no non-U.S. agency mortgage-backed securities that were determined to have such indications at 
December 31, 2022, as we sold these securities during the year.  We identified ten non-U.S. agency mortgage backed securities 
that were determined to have such indications at December 31, 2021.  A discounted future cash flow analysis was performed for 
each of these securities to determine if any portion of the impairment was due to credit and deemed to be other-than-temporary.  
The discount rate used in calculating the present value of future cash flows was the investment yield at the time of purchase for 
each security.  The initial default rates were assumed to remain constant or grade down over time, reflecting our estimate of 
stabilized collateral performance in the future for such securities. Impairments of this kind totaling less than $0.1 million were 
recorded in the years ended December 31, 2022, December 31, 2021 and December 31, 2020. 
Significant unrealized losses on securities can continue for extended periods of time, particularly for certain individual 
securities.  While this can be an indication of potential credit impairments, it can also be an indication of illiquidity in a 
particular sector or security.  In addition, the fair value of an individual security can be heavily influenced by the complexities 
of varying market sentiment or uncertainty regarding the prospects for an individual security.  Based upon the process described 
above, we are best able to determine if and to what extent credit impairment may exist in these securities by performing present 
value calculations of projected future cash flows at the conclusion of each reporting period.  By reviewing the most recent data 
available regarding the security and other relevant industry and market factors, we can modify assumptions used in the cash 
flow projections and determine the best estimate of the portion of any impairment that is due to credit at the conclusion of each 
period.
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
22

The following table provides information regarding fixed maturity securities available for sale with unrealized losses by asset 
class and by length of time that individual securities have been in a continuous unrealized loss position at December 31, 2022.  
We sold all of our corporate private-labeled residential mortgage-backed securities during 2022. 
Less Than 12 Months
12 Months or Longer
Total
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
U.S. Treasury securities and
      obligations of U.S. Government
$ 
96,610 
$ 
5,625 
$ 
4,428 
$ 
522 
$ 
101,038 
$ 
6,147 
Federal agency issued residential
      mortgage-backed securities 1
 
48,576 
 
4,594 
 
2,079 
 
779 
 
50,655 
 
5,373 
Subtotal
 
145,186 
 
10,219 
 
6,507 
 
1,301 
 
151,693 
 
11,520 
Corporate obligations:
Industrial
 
223,458 
 
28,273 
 
46,186 
 
13,495 
 
269,644 
 
41,768 
Energy
 
49,781 
 
3,056 
 
— 
 
— 
 
49,781 
 
3,056 
Communications and technology
 
111,704 
 
13,322 
 
22,710 
 
7,836 
 
134,414 
 
21,158 
Financial
 
265,816 
 
35,260 
 
52,654 
 
16,681 
 
318,470 
 
51,941 
Consumer
 
346,834 
 
39,723 
 
67,996 
 
22,749 
 
414,830 
 
62,472 
Public utilities
 
206,984 
 
29,528 
 
34,933 
 
13,732 
 
241,917 
 
43,260 
Subtotal
 1,204,577 
 
149,162 
 
224,479 
 
74,493 
 1,429,056 
 
223,655 
Municipal securities
 
173,299 
 
23,719 
 
13,582 
 
4,710 
 
186,881 
 
28,429 
Other
 
157,759 
 
10,426 
 
41,520 
 
4,106 
 
199,279 
 
14,532 
Redeemable preferred stocks
 
5,226 
 
774 
 
— 
 
— 
 
5,226 
 
774 
Total
$ 1,686,047 
$ 194,300 
$ 286,088 
$ 
84,610 
$ 1,972,135 
$ 278,910 
1  Federal agency securities are not backed by the full faith and credit of the U.S. Government.
The following table provides information regarding fixed maturity securities available for sale with unrealized losses by asset 
class and by length of time that individual securities have been in a continuous unrealized loss position at December 31, 2021.
Less Than 12 Months
12 Months or Longer
Total
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
U.S. Treasury securities and
      obligations of U.S. Government
$ 
2,973 
$ 
60 
$ 
1,843 
$ 
80 
$ 
4,816 
$ 
140 
Federal agency issued residential
      mortgage-backed securities 1
 
2,828 
 
13 
 
3 
 
— 
 
2,831 
 
13 
Subtotal
 
5,801 
 
73 
 
1,846 
 
80 
 
7,647 
 
153 
Corporate obligations:
Industrial
 
56,250 
 
1,146 
 
7,070 
 
424 
 
63,320 
 
1,570 
Energy
 
1,045 
 
39 
 
— 
 
— 
 
1,045 
 
39 
Communications and technology
 
30,492 
 
909 
 
2,297 
 
137 
 
32,789 
 
1,046 
Financial
 
46,844 
 
727 
 
19,592 
 
645 
 
66,436 
 
1,372 
Consumer
 
80,069 
 
2,535 
 
9,722 
 
572 
 
89,791 
 
3,107 
Public utilities
 
35,473 
 
969 
 
11,702 
 
609 
 
47,175 
 
1,578 
Subtotal
 
250,173 
 
6,325 
 
50,383 
 
2,387 
 
300,556 
 
8,712 
Municipal securities
 
16,300 
 
308 
 
2,258 
 
120 
 
18,558 
 
428 
Other
 
26,604 
 
135 
 
13,278 
 
947 
 
39,882 
 
1,082 
Total
$ 298,878 
$ 
6,841 
$ 
67,765 
$ 
3,534 
$ 
366,643 
$ 
10,375 
1  Federal agency securities are not backed by the full faith and credit of the U.S. Government.
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
23

The following table provides information regarding the number of fixed maturity securities with unrealized losses at 
December 31.  
2022
2021
Below cost for less than one year
 
1,120 
 
185 
Below cost for one year or more and less than three years
 
201 
 
36 
Below cost for three years or more
 
3 
 
— 
Total
 
1,324 
 
221 
We do not consider the unrealized losses related to these securities to be credit-related.  The unrealized losses at both 
December 31, 2022 and December 31, 2021 primarily related to changes in interest rates and market spreads subsequent to 
purchase.  A substantial portion of investment securities that have unrealized losses are either corporate debt issued with 
investment grade credit ratings or other investment securities.  Included in other investment securities are commercial 
mortgage-backed securities and asset-backed securities.
The following table summarizes investments in fixed maturity securities available for sale with unrealized losses at 
December 31, 2022.  We had no securities owned with realized impairment at December 31, 2022.
Amortized
Cost
Fair
Value
Gross 
Unrealized
Losses
Securities owned without realized impairment:
Unrealized losses of 10% or less
$ 1,129,645 
$ 1,073,851 
$ 
55,794 
Unrealized losses of 20% or less and greater than 10%
 
619,416 
 
528,146 
 
91,270 
Subtotal
 
1,749,061 
 
1,601,997 
 
147,064 
Unrealized losses greater than 20%:
Investment grade
 
498,145 
 
367,483 
 
130,662 
Below investment grade
 
3,839 
 
2,655 
 
1,184 
Total securities owned without realized impairment
$ 2,251,045 
$ 1,972,135 
$ 
278,910 
The following table summarizes investments in fixed maturity securities available for sale with unrealized losses at 
December 31, 2021.  We had no securities owned with realized impairment at December 31, 2021.
Amortized
Cost
Fair
Value
Gross 
Unrealized
Losses
Securities owned without realized impairment:
Unrealized losses of 10% or less
$ 
375,032 
$ 
364,870 
$ 
10,162 
Unrealized losses of 20% or less and greater than 10%
 
1,986 
 
1,773 
 
213 
Subtotal
 
377,018 
 
366,643 
 
10,375 
Unrealized losses greater than 20%:
Investment grade
 
— 
 
— 
 
— 
Below investment grade
 
— 
 
— 
 
— 
Total securities owned without realized impairment
$ 
377,018 
$ 
366,643 
$ 
10,375 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
24

The following table provides information on fixed maturity securities available for sale with unrealized losses by actual or 
equivalent Standard & Poor’s rating at December 31, 2022.
Fair
Value
%
of Total
Gross 
Unrealized
Losses
%
of Total
AAA
$ 
169,198 
 9 %
$ 
15,382 
 5 %
AA
 
433,563 
 22 %
 
52,351 
 19 %
A
 
634,047 
 32 %
 
106,442 
 38 %
BBB
 
717,389 
 36 %
 
101,877 
 37 %
Total investment grade
 
1,954,197 
 99 %
 
276,052 
 99 %
BB
 
13,386 
 1 %
 
1,257 
 — %
B and below
 
4,552 
 — %
 
1,601 
 1 %
Total below investment grade
 
17,938 
 1 %
 
2,858 
 1 %
$ 
1,972,135 
 100 %
$ 
278,910 
 100 %
The following table provides information on fixed maturity securities available for sale with unrealized losses by actual or 
equivalent Standard & Poor’s rating at December 31, 2021.
Fair
Value
%
of Total
Gross 
Unrealized
Losses
%
of Total
AAA
$ 
11,121 
 3 %
$ 
326 
 3 %
AA
 
51,904 
 14 %
 
1,537 
 15 %
A
 
145,334 
 40 %
 
4,308 
 41 %
BBB
 
156,235 
 42 %
 
4,134 
 40 %
Total investment grade
 
364,594 
 99 %
 
10,305 
 99 %
BB
 
2,049 
 1 %
 
70 
 1 %
Total below investment grade
 
2,049 
 1 %
 
70 
 1 %
$ 
366,643 
 100 %
$ 
10,375 
 100 %
We held no non-income producing securities at December 31, 2022 or December 31, 2021. 
We did not hold securities of any corporation and its affiliates that exceeded 10% of stockholders' equity at December 31, 2022 
or December 31, 2021.
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
25

We monitor structured securities through a combination of an analysis of vintage, credit ratings, and other factors.  Structured 
securities include asset-backed, residential mortgage-backed securities, collateralized debt obligations, and other collateralized 
obligations.
The following tables identify structured securities by credit ratings for all vintages owned at December 31.  We sold all of our 
corporate private-labeled residential mortgage-backed securities during 2022.
2022
Fair
Value
Amortized
Cost
Unrealized 
Losses
Structured securities:
Investment grade
$ 
205,027 
$ 
219,523 
$ 
(14,496) 
Below investment grade
 
— 
 
— 
 
— 
Total structured securities
$ 
205,027 
$ 
219,523 
$ 
(14,496) 
2021
Fair
Value
Amortized
Cost
Unrealized
Gains
Corporate private-labeled residential mortgage-backed securities:
Investment grade
$ 
1,506 
$ 
1,498 
$ 
8 
Below investment grade
 
10,538 
 
9,143 
 
1,395 
Total residential & non-agency mortgage-backed securities  
12,044 
 
10,641 
 
1,403 
Other structured securities:
Investment grade
 
175,397 
 
175,317 
 
80 
Below investment grade
 
— 
 
— 
 
— 
Total other structured securities
 
175,397 
 
175,317 
 
80 
Total structured securities
$ 
187,441 
$ 
185,958 
$ 
1,483 
The following table provides a reconciliation of credit losses recognized in earnings on fixed maturity securities for which a 
portion of the other-than-temporary impairment loss was recognized in Other Comprehensive Income (Loss) for the years 
ended December 31.
2022
2021
2020
Credit losses on securities held at the beginning of the year 
$ 
3,996 
$ 
3,884 
$ 
4,445 
Additional credit losses on securities for which an other-than-
     temporary impairment was recognized
 
34 
 
482 
 
19 
Reductions for securities sold
 
(4,030) 
 
(370) 
 
(580) 
Credit losses on securities held at the end of the year  
$ 
— 
$ 
3,996 
$ 
3,884 
The following table provides the net unrealized gains (losses) reported in Accumulated Other Comprehensive Income (Loss) on 
fixed maturity securities available for sale, at December 31.
2022
2021
2020
Net unrealized gains (losses)
$ 
(270,624) 
$ 
193,320 
$ 
320,990 
Amounts resulting from:
DAC, VOBA, and DRL
 
23,740 
 
(15,924) 
 
(25,982) 
Policyholder liabilities
 
— 
 
(33,877) 
 
(45,582) 
Deferred income taxes
 
51,847 
 
(30,139) 
 
(52,380) 
Total
$ 
(195,037) 
$ 
113,380 
$ 
197,046 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
26

Investment Revenues
The following table provides net investment income classified by income associated with invested assets and income associated 
with deposit-type reinsurance for the years ended December 31.
2022
2021
2020
Invested assets
$ 
132,067 
$ 
142,468 
$ 
145,684 
Deposit-type reinsurance 1
 
21,812 
 
— 
 
— 
Net investment income
$ 
153,879 
$ 
142,468 
$ 
145,684 
            1  See Note 14 - Reinsurance
The following table provides investment revenues by major category for the years ended December 31.
2022
2021
2020
Gross investment income:
Fixed maturity securities
$ 
97,173 
$ 
103,697 
$ 
107,125 
Equity securities
 
231 
 
433 
 
612 
Mortgage loans
 
24,959 
 
28,661 
 
26,804 
Real estate
 
17,426 
 
21,202 
 
22,586 
Policy loans
 
5,554 
 
5,625 
 
5,758 
Short-term investments
 
620 
 
9 
 
318 
Other 1
 
27,590 
 
220 
 
160 
Total
 
173,553 
 
159,847 
 
163,363 
Less investment expenses
 
(19,674) 
 
(17,379) 
 
(17,679) 
Net investment income
$ 
153,879 
$ 
142,468 
$ 
145,684 
            1  Includes investment income from the deposit-type reinsurance transaction.  See Note 14 - Reinsurance.
Investment Gains (Losses)
The following table provides net investment gains (losses) by major category for the years ended December 31.  
2022
2021
2020
Fixed maturity securities
$ 
(10,591) 
$ 
4,216 
$ 
4,955 
Equity securities
 
(332) 
 
(232) 
 
66 
Mortgage loans
 
39 
 
62 
 
(18) 
Real estate
 
656 
 
16,597 
 
14,649 
Other investments
 
(6,415) 
 
4,774 
 
2,183 
Net investment gains (losses)
$ 
(16,643) 
$ 
25,417 
$ 
21,835 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
27

The following table provides detail concerning investment gains and losses for the years ended December 31. 
2022
2021
2020
Gross gains resulting from:
Sales of investment securities
$ 
2,689 
$ 
631 
$ 
283 
Investment securities called and other
 
1,233 
 
4,510 
 
4,776 
Sale of real estate and joint ventures
 
656 
 
16,647 
 
14,889 
Total gross gains
 
4,578 
 
21,788 
 
19,948 
Gross losses resulting from:
Sales of investment securities
 
(14,455) 
 
(118) 
 
(5) 
Investment securities called and other
 
(24) 
 
(325) 
 
(80) 
Sale of real estate and joint ventures
 
— 
 
(50) 
 
(240) 
Total gross losses
 
(14,479) 
 
(493) 
 
(325) 
Change in allowance for loan losses
 
39 
 
62 
 
(18) 
Change in fair value:
Equity securities
 
(332) 
 
(232) 
 
66 
Other investments
 
(6,415) 
 
4,774 
 
2,183 
Total change in fair value
 
(6,747) 
 
4,542 
 
2,249 
Net realized investment gains (losses), excluding
      other-than-temporary impairment losses 
 
(16,609) 
 
25,899 
 
21,854 
Net impairment losses recognized in earnings:
Other-than-temporary impairment losses on 
  fixed maturity securities
 
— 
 
(467) 
 
— 
Portion of loss recognized in other 
  comprehensive income (loss)
 
(34) 
 
(15) 
 
(19) 
Net other-than-temporary impairment losses 
     recognized in earnings
 
(34) 
 
(482) 
 
(19) 
Net investment gains (losses)
$ 
(16,643) 
$ 
25,417 
$ 
21,835 
Gains and losses from sales of investment securities in the above table includes a net loss related to the deposit-type reinsurance 
agreement of $12.3 million during 2022.  The portion of loss recognized in Other Comprehensive Income (Loss) represents the 
non-credit portion of current or prior other-than-temporary impairment.  Other-than-temporary impairments of less than $0.1 
million were recorded in earnings during the year ended December 31, 2022.  Other-than-temporary impairments of $0.5 
million were recorded in earnings during the year ended December 31, 2021.  Other-than-temporary impairments of less than 
$0.1 million were recorded in earnings during the year ended December 31, 2020.  
Proceeds from Sales of Investment Securities
The following table provides proceeds from the sale of fixed maturity and equity securities, excluding maturities and calls, for 
the years ended December 31.  
2022
2021
2020
Proceeds
$ 
635,322 
$ 
42,779 
$ 
18,899 
The increase in proceeds in 2022 largely resulted from the deposit-type reinsurance agreement.
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
28

Mortgage Loans
Investments in mortgage loans totaled $591.9 million at December 31, 2022, compared to $596.0 million at December 31, 
2021.  Our mortgage loans are secured by commercial real estate and are stated at cost, adjusted for premium amortization and 
discount accretion, less an allowance for loan losses.  We believe this allowance is at a level adequate to absorb estimated credit 
losses.  This allowance was $2.8 million at both December 31, 2022 and December 31, 2021.  Our periodic evaluation and 
assessment of the adequacy of the allowance is based on known and inherent risks in the portfolio, historical and industry data, 
current economic conditions, and other relevant factors.  Please see Note 5 - Financing Receivables for additional information.  
We do not hold mortgage loans from any single borrower that exceed 5% of stockholders' equity.
Commercial mortgage loans represented 19% of our total investments at December 31, 2022, up from 15% at December 31, 
2021.  New commercial loans, including refinanced loans, totaled $88.2 million during 2022 and $118.5 million during 2021.  
The level of new commercial mortgage loans in any year is influenced by market conditions, as we respond to changes in 
interest rates, available spreads, borrower demand, and opportunities to acquire loans that meet our yield and quality thresholds.  
The average loan balance was $2.0 million at December 31, 2022 and $1.9 million at December 31, 2021.  
In addition to the subject collateral underlying the mortgage, we may require some amount of recourse from borrowers as 
another potential source of repayment should the loan default.  Any recourse requirement deemed necessary is determined as 
part of the underwriting requirements of each loan.  We added 22 new loans to the portfolio during 2022, and 91% of the total 
balance of these loans had some amount of recourse requirement.  The average loan-to-value ratio for the overall portfolio was 
45% at December 31, 2022 and 46% at December 31, 2021.  This ratio is based upon the current balance of loans relative to the 
appraisal of value at the time the loan was originated or acquired.  Additionally, we may receive fees when borrowers prepay 
their mortgage loans.  We have certain mortgage loans that have an unamortized premium, totaling less than $0.1 million at 
both December 31, 2022 and December 31, 2021. 
The following table identifies the gross mortgage loan principal outstanding and the allowance for loan losses at December 31.
2022
2021
Principal outstanding
$ 
594,681 
$ 
598,829 
Allowance for loan losses
 
(2,753) 
 
(2,792) 
Carrying value
$ 
591,928 
$ 
596,037 
The following table summarizes the amount of mortgage loans at December 31, segregated by year of origination.  Purchased 
loans are shown in the year acquired by the Company, although the individual loans may have been initially originated in prior 
years. 
2022
%
of Total
2021
%
of Total
Prior to 2014
$ 
30,554 
 5 %
$ 
56,024 
 9 %
2014
 
10,470 
 2 %
 
12,409 
 2 %
2015
 
46,149 
 8 %
 
64,001 
 11 %
2016
 
81,238 
 14 %
 
89,144 
 15 %
2017
 
58,073 
 10 %
 
74,107 
 12 %
2018
 
44,190 
 7 %
 
46,809 
 8 %
2019
 
25,079 
 4 %
 
27,930 
 5 %
2020
 
104,279 
 18 %
 
111,596 
 19 %
2021
 
107,620 
 18 %
 
116,809 
 19 %
2022
 
87,029 
 14 %
 
— 
 — %
Principal outstanding
$ 
594,681 
 100 %
$ 
598,829 
 100 %
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
29

The following table identifies mortgage loans by geographic location at December 31. 
2022
%
of Total
2021
%
of Total
Pacific
$ 
122,504 
 20 %
$ 
125,167 
 21 %
East north central
 
108,561 
 18 %
 
102,759 
 17 %
West south central
 
77,461 
 13 %
 
81,083 
 14 %
South Atlantic
 
69,340 
 12 %
 
72,021 
 12 %
Mountain
 
65,903 
 11 %
 
70,415 
 12 %
West north central
 
64,088 
 11 %
 
64,416 
 11 %
Middle Atlantic
 
46,098 
 8 %
 
42,691 
 7 %
East south central
 
29,985 
 5 %
 
29,108 
 5 %
New England
 
10,741 
 2 %
 
11,169 
 1 %
Principal outstanding
$ 
594,681 
 100 %
$ 
598,829 
 100 %
The following table identifies the concentration of mortgage loans by state greater than 5% of total at December 31. 
2022
%
of Total
2021
%
of Total
California
$ 
77,683 
 13 %
$ 
80,037 
 13 %
Texas
 
77,226 
 13 %
 
80,716 
 13 %
Ohio
 
54,718 
 9 %
 
52,651 
 9 %
Minnesota
 
37,860 
 6 %
 
45,787 
 8 %
Florida
 
34,738 
 6 %
 
36,796 
 6 %
Arizona
 
28,242 
 5 %
 
27,592 
 5 %
All others
 
284,214 
 48 %
 
275,250 
 46 %
Principal outstanding
$ 
594,681 
 100 %
$ 
598,829 
 100 %
The following table identifies mortgage loans by property type at December 31.   
2022
%
of Total
2021
%
of Total
Industrial
$ 
412,550 
 69 %
$ 
424,553 
 71 %
Office
 
107,371 
 18 %
 
102,547 
 17 %
Retail
 
32,586 
 5 %
 
33,019 
 6 %
Other 1
 
42,174 
 8 %
 
38,710 
 6 %
Principal outstanding
$ 
594,681 
 100 %
$ 
598,829 
 100 %
1  The Other category consists principally of medical properties and apartments.
The following table identifies mortgage loans by maturity at December 31.
2022
%
of Total
2021
%
of Total
Due in one year or less
$ 
34,463 
 6 %
$ 
11,120 
 2 %
Due after one year through five years
 
141,146 
 24 %
 
16,347 
 3 %
Due after five years through ten years
 
327,446 
 55 %
 
315,404 
 53 %
Due after ten years
 
91,626 
 15 %
 
255,958 
 42 %
Principal outstanding
$ 
594,681 
 100 %
$ 
598,829 
 100 %
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
30

The following table identifies the commercial mortgage portfolio by current loan balance as a percentage of the appraised value 
at the time of origination at December 31. 
2022
%
of Total
2021
%
of Total
70% or greater
$ 
36,378 
 6 %
$ 
70,951 
 12 %
50% to 69%
 
339,667 
 57 %
 
339,120 
 57 %
Less than 50%
 
218,636 
 37 %
 
188,758 
 31 %
Principal outstanding
$ 
594,681 
 100 %
$ 
598,829 
 100 %
We diversify our commercial mortgage loan portfolio both geographically and by property type to reduce certain risks, 
including local and regional physical and economic exposures.  However, diversification may not always sufficiently mitigate 
these risks.  Concentration risk exposes us to potential losses from an economic downturn, certain catastrophes, and natural 
disasters that may affect geographic locations where we have mortgage loans.  We would not expect an occurrence in any of 
these geographic locations to have a material adverse effect on our business, financial position, or financial statements.  
However, we cannot provide assurance that such risks could not have such material adverse effects.  
Under the laws of certain states, environmental contamination of a property may result in a lien on the property to secure 
recovery of the costs of cleanup.  In some states, such a lien has priority over the lien of an existing mortgage against such 
property.  As a commercial mortgage lender, we customarily conduct environmental assessments prior to making commercial 
mortgage loans secured by real estate and before taking title on real estate.  Based on our environmental assessments, we 
believe that any compliance costs associated with environmental laws and regulations or any remediation of affected properties 
would not have a material adverse effect on our business, financial position, or financial statements.  However, we cannot 
provide assurance that material compliance costs will not be incurred.
We may refinance commercial mortgage loans prior to contractual maturity as a means of retaining loans that meet our 
underwriting and pricing parameters.  We refinanced six loans with a total outstanding balance of $18.3 million during the year 
ended December 31, 2022.  We refinanced eight loans with a total outstanding balance of $14.5 million during the year ended 
December 31, 2021.  None of these refinancings were the result of troubled debt restructuring.
At December 31, 2022 and December 31, 2021, we did not have any loan defaults and no material contract modifications, 
deferrals, or forbearance agreements had been executed.  However, certain short-term deferrals of principal and interest on a 
small portion of the mortgage loan portfolio were granted during 2020 related to the COVID-19 pandemic and the associated 
economic impacts.  The mortgage loan deferrals that were granted in 2020 concluded and were fully repaid in 2021.  We 
continue to closely monitor our mortgage loan portfolio and work closely with borrowers who are or were negatively impacted 
by the COVID-19 pandemic.  
In the normal course of business, we commit to fund commercial mortgage loans generally up to 120 days in advance.  These 
commitments typically have fixed expiration dates.  A small percentage of commitments expire due to the borrower's failure to 
deliver the requirements of the commitment by the expiration date.  In these cases, the commitment fee is retained.  For 
additional information, please see Note 20 - Commitments, Contingent Liabilities, Guarantees, and Indemnifications.
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
31

Real Estate
The following table provides information concerning real estate investments by major category at December 31. 
2022
2021
Land
$ 
56,075 
$ 
56,075 
Buildings
 
131,435 
 
131,919 
Less accumulated depreciation
 
(49,332) 
 
(48,690) 
Real estate, commercial
 
138,178 
 
139,304 
Real estate, joint ventures
 
3,471 
 
2,974 
Total
$ 
141,649 
$ 
142,278 
Investment real estate is depreciated on a straight-line basis over periods ranging from three years to 60 years.  We had real 
estate sales of $0.8 million during 2022, $51.0 million during 2021, and $29.7 million during 2020.  In the fourth quarter of 
2021, we completed the acquisition of 100% membership interests of certain land and buildings in three separate limited 
liability companies in Urbandale, Iowa for $36.0 million.  This acquisition terminated an arrangement previously identified as a 
real estate joint venture in 2020 discussed in the following paragraph.
We had $3.5 million in real estate joint ventures at December 31, 2022, compared with $3.0 million at December 31, 2021.  At 
December 31, 2020, we were the holder of all shares in three subsidiary real estate joint ventures with a combined carrying 
value of $20.3 million.  Each of the three subsidiary real estate limited liability companies held a 50% interest in three separate 
joint ventures, all based in Urbandale, Iowa.  Our position in these joint ventures was terminated during 2021.       
The Company periodically reviews its real estate and real estate joint ventures for impairment and tests for recoverability 
whenever events or changes in circumstances indicate the carrying value may not be recoverable and exceeds its estimated fair 
value.  For equity method investees, we consider financial and other information provided by the investee as well as other 
known information, including recent market activity and prospects for future activity, in determining whether an impairment 
has occurred.  Based on our reviews performed, we concluded that no impairment existed as of December 31, 2022 or 2021.
We had non-income producing commercial real estate, consisting of vacant properties and properties under development, of 
$35.7 million at December 31, 2022, compared to $41.0 million at December 31, 2021.  None of our real estate joint ventures 
were non-income producing at December 31, 2022 or December 31, 2021.
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
32

4. Fair Value Measurements
Under GAAP, fair value represents the price that would be received to sell an asset or paid to transfer a liability (exit price) in 
an orderly transaction between market participants at the measurement date.  We maximize the use of observable inputs and 
minimize the use of unobservable inputs when developing fair value measurements.
We categorize our financial assets and liabilities measured at fair value in three levels, based on the inputs and assumptions 
used to determine the fair value.  These levels are as follows:
Level 1 - Valuations are based upon unadjusted quoted prices for identical instruments traded in active markets.  
Level 2 - Valuations are based upon quoted prices for similar instruments in active markets, quoted prices for identical or 
similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions 
are observable in the market.  Valuations are obtained from a third-party pricing service or inputs that are observable or derived 
principally from or corroborated by observable market data.  
Level 3 - Valuations are generated from techniques that use significant assumptions not observable in the market.  These 
unobservable assumptions reflect our assumptions that market participants would use in pricing the asset or liability.  Valuation 
techniques include the use of discounted cash flow models, spread-based models, and similar techniques, using the best 
information available in the circumstances. 
Following is a description of valuation methodologies used for assets and liabilities recorded at fair value and for estimating fair 
value for financial instruments not recorded at fair value but for which fair value is disclosed.
Assets
Fixed Maturity and Equity Securities 
Fixed maturity securities available for sale and equity securities are recorded at fair value on a recurring basis.  Fair value 
measurement is based upon unadjusted quoted prices, if available, except as described in the subsequent paragraphs.
Short-Term Investments
Short-term investments include highly-liquid investments in institutional money market funds that are carried at NAV.  The 
carrying value of short-term investments approximates the fair value and are categorized as Level 1.  Fair value is provided for 
disclosure purposes only.
Other Investments
Other investments include hedge positions classified as derivatives that are established in relation to the Company's indexed 
universal life portfolio.  These positions are recorded at fair value and are classified as Level 2.  Other investments also include 
holdings in certain mineral rights, which are valued giving consideration to the underlying holdings of the real estate interests.  
These investments are classified as Level 3.   
Separate Accounts
The separate account assets and liabilities, which are equal, are recorded at fair value based upon NAV of the underlying 
investment holdings as derived from closing prices on a national exchange or as provided by the issuer.  This is the value at 
which a policyholder could transact with the issuer on that date.  Separate accounts are categorized as Level 2.
Liabilities
Investment-Type Liabilities Included in Policyholder Account Balances and Other Policyholder Funds
The fair values of supplementary contracts and annuities without life contingencies are estimated to be the present value of 
payments at a market yield.  The fair values of deposits with no stated maturity are estimated to be the amount payable on 
demand at the measurement date.  These liabilities are categorized as Level 3.  We have not estimated the fair value of the 
liabilities under contracts that involve significant mortality or morbidity risks, as these liabilities fall within the definition of 
insurance contracts.  Insurance contracts are excluded from financial instruments that require disclosures of fair value. 
Reserves established in relation to the Company's hedge positions on its indexed universal life portfolio are considered to be 
financial derivatives and are accounted for at fair value.  These reserves are classified as level 3. 
Guaranteed Minimum Withdrawal Benefits Included in Other Policyholder Funds
Fair value for GMWB rider contracts is a Level 3 valuation, as it is based on models which utilize significant unobservable 
inputs.  These models require actuarial and financial market assumptions, which reflect the assumptions market participants 
would use in pricing the contract, including adjustments for volatility, risk, and issuer non-performance.  
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
33

Determination of Fair Value
We utilized external third-party pricing services at both December 31, 2022 and December 31, 2021 to determine the majority 
of our fair values on fixed maturity and equity securities.  At December 31, 2022, approximately 83% of the carrying value of 
these investments was from an external pricing service, 17% was from brokers, and less than 1% was derived from internal 
matrices and calculations.  At December 31, 2021, approximately 90% of the carrying value of these investments was from an 
external pricing service, 10% was from brokers, and less than 1% was derived from internal matrices and calculations.  We 
review prices received from service providers for reasonableness and unusual fluctuations, but we generally accept the price 
identified from the pricing service.  In the event a price is not available from the third-party pricing service, we pursue external 
pricing from brokers.  Generally, we pursue and utilize only one broker quote per security.  In doing so, we only solicit brokers 
who have previously demonstrated knowledge and experience of the subject security.  If a broker price is not available, we 
determine a fair value through various valuation techniques that may include discounted cash flows, spread-based models, or 
similar techniques, depending upon the specific security to be priced.  These techniques are primarily applied to private 
placement securities.  We utilize available market information, wherever possible, to identify inputs into the fair value 
determination, primarily prices and spreads on comparable securities. 
Each quarter, we evaluate the prices received from the third-party pricing service and independent brokers to ensure that the 
prices represent a reasonable estimate of the fair value within the macro-economic environment, sector factors, and overall 
pricing trends and expectations.  We corroborate and validate the pricing source through a variety of procedures that include but 
are not limited to: comparison to brokers, where possible; a review of third-party pricing service methodologies; back testing; 
in-depth specific analytics on randomly selected issues; and comparison of prices to actual trades for specific securities where 
observable data exists.  In addition, we analyze the third-party pricing service's methodologies and related inputs and also 
evaluate the various types of securities in our investment portfolio to determine an appropriate fair value hierarchy.  Finally, we 
also perform additional evaluations when individual prices fall outside tolerance levels when comparing prices received from 
the third-party pricing service.
Fair value measurements for assets and liabilities where limited or no observable market data exists are calculated using our 
own estimates and are categorized as Level 3.  These estimates are based on current interest rates, credit spreads, liquidity 
premium or discount, the economic and competitive environment, unique characteristics of the asset or liability, and other 
pertinent factors.  Therefore, these estimates cannot be determined with precision and may not be realized in an actual sale or 
immediate settlement of the asset or liability.  Further, changes in the underlying assumptions used, including discount rates and 
estimates of future cash flows, could significantly affect the results of current or future values.
Our own estimates of fair value of fixed maturity and equity securities may be derived in a number of ways, including but not 
limited to: 1) pricing provided by brokers, where the price indicates reliability as to value; 2) fair values of comparable 
securities, incorporating a spread adjustment for maturity differences, collateralization, credit quality, liquidity, and other items, 
if applicable; 3) discounted cash flow models and margin spreads; 4) bond yield curves; 5) observable market prices and 
exchange transaction information not provided by external pricing services; and 6) statement values provided to us by fund 
managers.
The fair value of the GMWB embedded derivative is calculated using a discounted cash flow valuation model that projects 
future cash flows under multiple risk neutral stochastic equity scenarios.  Cash flows are discounted at the risk-free rate plus a 
spread for issuer discount (non-performance) risk.  The risk neutral scenarios are generated using the current risk-free rate curve 
and projected equity volatilities and correlations.  The equity correlations are based on historical price observations.  For 
policyholder behavior assumptions, expected lapse and utilization assumptions are used and updated for actual experience.  The 
mortality assumption is based on the 2012 Individual Annuity Reserving Table.  The source for risk-free rates was changed in 
the third quarter of 2022, to use the Treasury (CMT) rate curve instead of the London Interbank Offered Rate (LIBOR) Swap 
curve.  This change was made due to the upcoming change in publication and anticipated cessation of LIBOR rates.  The 
change in rates did not result in a material impact to the consolidated financial statements for the year ended December 31, 
2022.  
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
34

Categories Reported at Fair Value
The following tables present the fair value hierarchy for those assets and liabilities reported at fair value on a recurring basis at 
December 31.  We sold all of our corporate private-labeled residential mortgage-backed securities during 2022.
2022
Level 1
Level 2
Level 3
Total
Assets:
U.S. Treasury securities and 
    obligations of U.S. Government
$ 
8,837 
$ 
94,002 
$ 
— 
$ 
102,839 
Federal agency issued residential
    mortgage-backed securities 1
 
— 
 
56,493 
 
— 
 
56,493 
Subtotal
 
8,837 
 
150,495 
 
— 
 
159,332 
Corporate obligations:
Industrial
 
— 
 
300,302 
 
— 
 
300,302 
Energy
 
— 
 
75,166 
 
— 
 
75,166 
Communications and technology
 
— 
 
159,716 
 
— 
 
159,716 
Financial
 
— 
 
349,655 
 
— 
 
349,655 
Consumer
 
— 
 
428,322 
 
— 
 
428,322 
Public utilities
 
— 
 
272,247 
 
— 
 
272,247 
Subtotal
 
— 
 1,585,408 
 
— 
 1,585,408 
Municipal securities
 
— 
 
249,826 
 
— 
 
249,826 
Other
 
— 
 
205,027 
 
— 
 
205,027 
Redeemable preferred stocks
 
— 
 
5,226 
 
— 
 
5,226 
Fixed maturity securities
 
8,837 
 2,195,982 
 
— 
 2,204,819 
Equity securities
 
425 
 
1,151 
 
342 
 
1,918 
Short-term investments
 
58,497 
 
— 
 
— 
 
58,497 
Other investments
 
— 
 
2,960 
 
436 
 
3,396 
Separate account assets
 
— 
 
381,581 
 
— 
 
381,581 
Total
$ 
67,759 
$ 2,581,674 
$ 
778 
$ 2,650,211 
Percent of total
 3 %
 97 %
 — %
 100 %
Liabilities:
Policyholder account balances:
Indexed universal life
$ 
— 
$ 
— 
$ 
2,802 
$ 
2,802 
Other policyholder funds:
Guaranteed minimum withdrawal benefits
 
— 
 
— 
 
(2,849) 
 
(2,849) 
Separate account liabilities
 
— 
 
381,581 
 
— 
 
381,581 
Total
$ 
— 
$ 
381,581 
$ 
(47) 
$ 
381,534 
1  Federal agency securities are not backed by the full faith and credit of the U.S. Government.
 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
35

2021
Level 1
Level 2
Level 3
Total
Assets:
U.S. Treasury securities and 
     obligations of U.S. Government
$ 
9,489 
$ 
150,951 
$ 
— 
$ 
160,440 
Federal agency issued residential
      mortgage-backed securities 1
 
— 
 
75,698 
 
— 
 
75,698 
Subtotal
 
9,489 
 
226,649 
 
— 
 
236,138 
Corporate obligations:
Industrial
 
— 
 
437,718 
 
— 
 
437,718 
Energy
 
— 
 
156,191 
 
— 
 
156,191 
Communications and technology
 
— 
 
249,552 
 
— 
 
249,552 
Financial
 
— 
 
488,342 
 
— 
 
488,342 
Consumer
 
— 
 
684,461 
 
— 
 
684,461 
Public utilities
 
— 
 
373,351 
 
— 
 
373,351 
Subtotal
 
— 
 2,389,615 
 
— 
 2,389,615 
Corporate private-labeled residential
     mortgage-backed securities
 
— 
 
12,044 
 
— 
 
12,044 
Municipal securities
 
— 
 
268,955 
 
— 
 
268,955 
Other
 
— 
 
175,397 
 
— 
 
175,397 
Redeemable preferred stocks
 
— 
 
6,048 
 
— 
 
6,048 
Fixed maturity securities
 
9,489 
 3,078,708 
 
— 
 3,088,197 
Equity securities
 
406 
 
3,270 
 
— 
 
3,676 
Short-term investments
 
74,501 
 
— 
 
— 
 
74,501 
Other investments
 
— 
 
6,688 
 
— 
 
6,688 
Separate account assets
 
— 
 
504,976 
 
— 
 
504,976 
Total
$ 
84,396 
$ 3,593,642 
$ 
— 
$ 3,678,038 
Percent of total
 2 %
 98 %
 — %
 100 %
Liabilities:
Policyholder account balances:
Indexed universal life
$ 
— 
$ 
— 
$ 
6,264 
$ 
6,264 
Other policyholder funds:
Guaranteed minimum withdrawal benefits
 
— 
 
— 
 
(149) 
 
(149) 
Separate account liabilities
 
— 
 
504,976 
 
— 
 
504,976 
Total
$ 
— 
$ 
504,976 
$ 
6,115 
$ 
511,091 
1  Federal agency securities are not backed by the full faith and credit of the U.S. Government.
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
36

The changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the years ended December 31 are 
summarized below.  
 
2022
Assets
Liabilities
Equity 
Securities and 
Other 
Investments
Indexed 
Universal Life
GMWB
Beginning balance
$ 
— 
$ 
6,264 
$ 
(149) 
Included in earnings
 
212 
 
(3,462) 
 
(2,872) 
Included in other comprehensive 
     income (loss)
 
— 
 
— 
 
— 
Purchases, issuances, sales and 
     other dispositions:
Purchases
 
566 
 
— 
 
— 
Issuances
 
— 
 
— 
 
308 
Sales
 
— 
 
— 
 
— 
Other dispositions
 
— 
 
— 
 
(136) 
Transfers out of Level 3
 
— 
 
— 
 
— 
Ending balance
$ 
778 
$ 
2,802 
$ 
(2,849) 
2021
Liabilities
Indexed 
Universal Life
GMWB
Beginning balance
$ 
5,402 
$ 
2,201 
Included in earnings
 
862 
 
(3,208) 
Included in other comprehensive 
     income (loss)
 
— 
 
— 
Purchases, issuances, sales and 
     other dispositions:
Purchases
 
— 
 
— 
Issuances
 
— 
 
1,018 
Sales
 
— 
 
— 
Other dispositions
 
— 
 
(160) 
Transfers out of Level 3
 
— 
 
— 
Ending balance
$ 
6,264 
$ 
(149) 
We did not have any transfers between any levels during the years ended December 31, 2022 or December 31, 2021.
We use the Black Scholes valuation method, including parameters for market volatility, risk-free rate, and index level, for the 
indexed universal life liabilities categorized as Level 3.  We also use a 100% persistency assumption.  Persistency of the 
business is an unobservable input. 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
37

The following table presents the valuation method for the GMWB liability categorized as Level 3, as well as the unobservable 
inputs used in the valuation of those financial instruments at December 31, 2022.
Fair Value
Valuation 
Technique
Unobservable 
Inputs
Range
Embedded Derivative - 
GMWB
$ 
(2,849) 
Actuarial cash flow 
model
Mortality
85% of the 2012 IAR 
Table
Lapse
0%-12% depending on 
product/duration/
funded status of 
guarantee
Benefit Utilization
0%-80% depending on 
age/duration/funded 
status of guarantee
Nonperformance 
Risk
0.33%-1.40%
The following table presents the valuation method for the GMWB liability categorized as Level 3, as well as the unobservable 
inputs used in the valuation of those financial instruments at December 31, 2021.
Fair Value
Valuation 
Technique
Unobservable 
Inputs
Range
Embedded Derivative - 
GMWB
$ 
(149) 
Actuarial cash flow 
model
Mortality
85% of the 2012 IAR 
Table
Lapse
0%-12% depending on 
product/duration/
funded status of 
guarantee
Benefit Utilization
0%-80% depending on 
age/duration/funded 
status of guarantee
Nonperformance 
Risk
0.27%-1.13%
The GMWB liability is sensitive to changes in observable and unobservable inputs.  Observable inputs include risk-free rates, 
index returns, volatilities, and correlations.  Increases in risk-free rates and equity returns reduce the liability, while increases in 
volatilities increase the liability.  Unobservable inputs include mortality, lapse, benefit utilization, and nonperformance risk 
adjustments.  Increases in mortality, lapses, and credit spreads used for nonperformance risk reduce the liability, while increases 
in benefit utilization increase the liability.
Following are estimates of the impact from changes in unobservable inputs on the GMWB liability at December 31.
2022
2021
Increase/(Decrease)
in millions
A 10% increase in the mortality assumption
$ 
(0.1) 
$ 
(0.2) 
A 10% decrease in the lapse assumption
 
— 
 
0.3 
A 10% increase in the benefit utilization
 
0.4 
 
1.1 
A 10 basis point increase in the credit spreads used for non-performance
 
(0.2) 
 
(0.4) 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
38

The following tables present a summary of fair value estimates for financial instruments at December 31.  Assets and liabilities 
that are not financial instruments are not included in this disclosure.  The total of the fair value calculations presented below 
may not be indicative of the value that can be obtained.
2022
Fair Value
Carrying
Value
Level 1
Level 2
Level 3
Total
Assets:
Investments:
Mortgage loans
$ 
— 
$ 
— 
$ 
538,275 
$ 
538,275 
$ 
591,928 
Policy loans
 
— 
 
— 
 
82,739 
 
82,739 
 
82,739 
Other investments
 
— 
 
9,044 
 
— 
 
9,044 
 
9,044 
Liabilities:
Individual and group annuities
 
— 
 
— 
 1,125,759 
 1,125,759 
 1,142,528 
Supplementary contracts and annuities
    without life contingencies
 
— 
 
— 
 
52,242 
 
52,242 
 
56,407 
Policyholder account balances:
Funding agreement
 
— 
 
100,614 
 
— 
 
100,614 
 
100,614 
2021
Fair Value
Carrying
Value
Level 1
Level 2
Level 3
Total
Assets:
Investments:
Mortgage loans
$ 
— 
$ 
— 
$ 
613,829 
$ 
613,829 
$ 
596,037 
Policy loans
 
— 
 
— 
 
82,060 
 
82,060 
 
82,060 
Other investments
 
— 
 
6,152 
 
— 
 
6,152 
 
6,152 
Liabilities:
Individual and group annuities
 
— 
 
— 
 1,088,328 
 1,088,328 
 1,106,065 
Supplementary contracts and annuities
    without life contingencies
 
— 
 
— 
 
54,248 
 
54,248 
 
54,899 
Policyholder account balances:
Funding agreement
 
— 
 
30,023 
 
— 
 
30,023 
 
30,023 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
39

5. Financing Receivables
We have financing receivables with specific maturity dates that are recognized as assets in the Consolidated Balance Sheets.
The following table identifies financing receivables by classification amount at December 31. 
2022
2021
Agent receivables, net
      (allowance $198; 2021 - $912)
$ 
1,635 
$ 
1,819 
Investment-related financing receivables:
Mortgage loans, net
      (allowance $2,753; 2021 - $2,792)
 
591,928 
 
596,037 
Total financing receivables
$ 
593,563 
$ 
597,856 
Agent Receivables
We have certain agent receivables that are classified as financing receivables.  These receivables from agents are specifically 
assessed for collectibility and are reduced by an allowance for doubtful accounts.  Agent receivables are included in Other 
Assets in the Consolidated Balance Sheets.  
The following table details the gross receivables, allowance, and net receivables for the two types of agent receivables at 
December 31.
2022
2021
Gross 
Receivables
Allowance
Net 
Receivables
Gross 
Receivables
Allowance
Net 
Receivables
Agent specific loans 
$ 
543 
$ 
150 
$ 
393 
$ 
833 
$ 
266 
$ 
567 
Other agent receivables
 
1,290 
 
48 
 
1,242 
 
1,898 
 
646 
 
1,252 
Total
$ 
1,833 
$ 
198 
$ 
1,635 
$ 
2,731 
$ 
912 
$ 
1,819 
The following table details the activity within the allowance for doubtful accounts on agent receivables at December 31.  Any 
recoveries are included as deductions.
2022
2021
Beginning of year
$ 
912 
$ 
1,084 
Additions
 
261 
 
58 
Deductions
 
(975) 
 
(230) 
End of year
$ 
198 
$ 
912 
Mortgage Loans
We classify our mortgage loan portfolio as long-term financing receivables.  Mortgage loans are stated at cost, adjusted for 
amortization of premium and accretion of discount, less an allowance for loan losses.  Mortgage loan interest income is 
recognized on an accrual basis with any premium or discount amortized over the life of the loan.  Prepayment and late fees are 
recorded on the date of collection.  Loans in foreclosure, loans considered impaired, or loans past due 90 days or more are 
placed on non-accrual status.  Payments received on loans on non-accrual status for these reasons are applied first to interest 
income not collected while on non-accrual status, followed by fees, accrued and past-due interest, and principal.
If a mortgage loan is placed on non-accrual status, we do not accrue interest income in the financial statements.  The loan is 
independently monitored and evaluated as to potential impairment or foreclosure.  This evaluation includes assessing the 
probability of receiving future cash flows, along with consideration of many of the factors described below.  If delinquent 
payments are made and the loan is brought current, then we return the loan to active status and accrue income accordingly.
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
40

The following table details the mortgage loan portfolio as collectively or individually evaluated for impairment at December 31.
2022
2021
Mortgage loans collectively evaluated
      for impairment
$ 
560,612 
$ 
563,196 
Mortgage loans individually evaluated
      for impairment
 
34,069 
 
35,633 
Allowance for loan losses
 
(2,753) 
 
(2,792) 
Carrying value
$ 
591,928 
$ 
596,037 
Generally, we consider our mortgage loans to be a portfolio segment.  We consider our primary class to be property type.  We 
primarily use loan-to-value as our credit risk quality indicator but also monitor additional secondary risk factors, such as 
geographic distribution both on a regional and specific state basis.  The mortgage loan portfolio segment is presented by 
property type in a table in Note 3 - Investments, as are geographic distributions by both region and state.  These measures are 
also supplemented with various other analytics to provide additional information concerning potential impairment of mortgage 
loans and management's assessment of financing receivables.
There were no mortgage loans that were past due at December 31, 2022 or December 31, 2021.  
We had no troubled debt restructurings during 2022 or 2021.  
The following table details the activity within the allowance for mortgage loan losses at December 31.  The provision reflects 
new loans and maturities, and the deductions reflect payments on loans and recoveries received.  
2022
2021
Beginning of year
$ 
2,792 
$ 
2,854 
Provision
 
387 
 
539 
Deductions
 
(426) 
 
(601) 
End of year
$ 
2,753 
$ 
2,792 
The allowance for loan losses is monitored and evaluated at multiple levels with a process that includes, but is not limited to, 
the factors presented below.  Generally, we establish the allowance for loan losses using the collectively evaluated impairment 
methodology at an overall portfolio level and then specifically identify an allowance for loan losses on loans that contain 
elevated risk profiles.  If we determine through our evaluation that a loan has an elevated specific risk profile, we then 
individually assess the loan’s risk profile and may assign a specific allowance value based on many factors, including those 
identified below.
Macro-environmental and elevated risk profile considerations:
•
Current industry conditions, inclusive of the COVID-19 pandemic, that are affecting the market, including rental and 
vacancy rates;
•
Perceived market liquidity;
•
Analysis of the markets and sub-markets in which we have mortgage loans;
•
Analysis of industry historical loss and delinquency experience;
•
Other factors that we may perceive as important or critical given our portfolio; and
•
Analysis of our loan portfolio based on loan size concentrations, geographic concentrations, property type 
concentrations, maturity concentrations, origination loan-to-value concentrations, and borrower concentrations.
Specific mortgage loan level considerations:
•
The payment history of each borrower;
•
Negative reports from property inspectors; and
•
Each loan’s property financial statement including net operating income, debt service coverage, and occupancy level.
We have not acquired any mortgage loans with deteriorated credit quality during the years presented.
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
41

As part of our process of monitoring impairments on loans, there are a number of significant risks and uncertainties inherent in 
this process.  These risks include, but are not limited to:
•
The risk that our assessment of a borrower's ability to meet all of its contractual obligations will change based on 
changes in the credit characteristics of the borrower or property;
•
The risk that the economic outlook will be worse than expected or have more of an impact on the borrower than 
anticipated;
•
The risk that the performance of the underlying property could deteriorate in the future;
•
The risk that fraudulent, inaccurate, or misleading information could be provided to us;
•
The risk that the methodology or assumptions used to develop estimates of the portion of the impairment of the loan 
prove over time to be inaccurate; and
•
The risk that other facts and circumstances change such that it becomes more likely than not that we will not obtain all 
of the contractual payments.
To the extent our review and evaluation determines a loan is impaired, that amount is charged to the allowance for loan losses 
and the loan balance is reduced.  In the event that a property is foreclosed upon, the carrying value is recorded at fair value, less 
costs to sell the property at the time of foreclosure, with a charge to the allowance and a corresponding reduction to the 
mortgage loan asset.  The property is then transferred to real estate where we have the ability and intent to manage these 
properties on an ongoing basis.
6. Variable Interest Entities (VIEs)
We invest in certain affordable housing and real estate joint ventures that are classified as VIEs.  These VIEs are included in 
Real Estate in the Consolidated Balance Sheets.  We also invest in certain private equity security interests.  These VIEs are 
included in Other Investments in the Consolidated Balance Sheets.  
The assets held in affordable housing real estate joint venture VIEs are primarily residential real estate properties that are 
restricted to provide affordable housing under federal or state programs for varying periods of time.  The restrictions primarily 
apply to the rents that may be paid by tenants residing in the properties during the term of an agreement to remain in the 
affordable housing program.  Investments in these joint ventures are equity interests in partnerships or limited liability 
companies that may or may not participate in profits or residual value.  Our investments in these entities generate a return 
primarily through the realization of federal and state income tax credits and other tax benefits, such as tax deductions from 
operating losses of the investments, over specified time periods.  We amortize the initial cost of the investment in proportion to 
the tax credits and other tax benefits received and recognize the net investment performance in the Consolidated Statements of 
Comprehensive Income as a component of Income Tax Expense.  The tax credits reduce tax expense while the amortization 
increases tax expense.  
The following table provides information regarding our VIEs that generate tax credits and related amortization for the years 
ended December 31.
2022
2021
2020
Federal income tax credits realized
$ 
405 
$ 
920 
$ 
1,697 
Amortization
 
193 
 
672 
 
1,093 
Our investments in other real estate VIEs and private equity security interest VIEs are recorded using the equity method.  Cash 
distributions from the VIEs and cash contributions to the VIEs are recorded as decreases or increases, respectively, in the 
carrying value of the VIE.  Certain other equity investments in VIEs, where permitted, are recorded on an amortized cost basis.  
The operating performance of investments in the VIE is recorded in the Consolidated Statements of Comprehensive Income as 
investment income or as a component of Income Tax Expense, depending upon the nature and primary design of the 
investment.  We evaluate the carrying value of VIEs for impairment on an ongoing basis to assess whether the carrying value is 
expected to be realized during the anticipated life of the investment.  No impairments were recorded during the years ended 
December 31, 2022, December 31, 2021, or December 31, 2020. 
Investments in the affordable housing and real estate joint ventures are interests that absorb portions of the VIE's expected 
losses.  These investments also receive portions of expected residual returns of the VIE's net assets exclusive of variable 
interests.  We make an assessment of whether we are the primary beneficiary of a VIE at the time of the initial investment and 
on an ongoing basis thereafter.  We consider many factors when making this determination based upon a review of the 
underlying investment agreement and other information related to the specific investment.  The first factor is whether we have 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
42

the ability to direct the activities of a VIE that most significantly impact the VIE's economic performance.  The power to direct 
the activities of the VIE is generally vested in the managing general partner or managing member of the VIE, which is not the 
position held by us in these investments.  Other factors include the entity's equity investment at risk, decision-making abilities, 
obligations to absorb economic risks, the right to receive economic rewards of the entity, and the extent to which we share in 
the VIE's expected losses and residual returns.
The following table presents the carrying amount and maximum exposure to loss relating to VIEs for which we hold a variable 
interest, but are not the primary beneficiary, and which had not been consolidated at December 31, 2022 and December 31, 
2021.  The table includes investments in one real estate joint venture, six affordable housing real estate joint ventures, and one 
private equity security interest at December 31, 2022 and two real estate joint ventures and seven affordable housing real estate 
joint ventures at December 31, 2021.  In 2021, we sold our membership in three real estate joint ventures for $20.2 million.  
 
2022
2021
 
Carrying
Amount
Maximum
Exposure
to Loss
Carrying
Amount
Maximum
Exposure
to Loss
Real estate joint ventures
$ 
1,680 
$ 
1,680 
$ 
978 
$ 
978 
Affordable housing real estate joint ventures
 
1,791 
 
8,794 
 
1,996 
 
10,223 
Private equity security interests
 
6,309 
 
32,009 
 
— 
 
— 
Total
$ 
9,780 
$ 
42,483 
$ 
2,974 
$ 
11,201 
The maximum exposure to loss relating to the real estate joint ventures, affordable housing real estate joint ventures, and private 
equity security interests is equal to the carrying amounts plus any unfunded equity commitments, exposure to potential 
recapture of tax credits, guarantees of debt, or other obligations of the VIE with recourse.  Unfunded equity and loan 
commitments typically require financial or operating performance by other parties and have not yet become due or payable, but 
which may become due in the future.
At December 31, 2022 and December 31, 2021, we had no equity commitments outstanding to the real estate joint venture 
VIEs.  At December 31, 2022 and December 31, 2021, we had no contingent commitments to fund additional equity 
contributions for operating support to real estate joint venture VIEs.  At December 31, 2022, we had unfunded commitments of 
$27.1 million for additional private equity security interest contributions.  At December 31, 2021, we had no commitments to 
fund additional private equity security interest contributions. 
In addition, the maximum exposure to loss on affordable housing joint ventures included $5.2 million of losses which could be 
realized if the tax credits received by the VIEs were recaptured at December 31, 2022, compared to $6.2 million at 
December 31, 2021.  Recapture events would cause us to reverse some or all of the benefit previously recognized by us or third 
parties to whom the tax credit interests were transferred.  A recapture event can occur at any time during a 15-year required 
compliance period.  The principal causes of recapture include financial default and non-compliance with affordable housing 
program requirements by the properties controlled by the VIE.  Guarantees from the managing member or managing partner in 
the VIE, insurance contracts, or changes in the residual value accruing to our interests in the VIE may mitigate the potential 
exposure due to recapture.
7. Separate Accounts
Separate account assets and liabilities arise from the sale of variable universal life insurance and variable annuity products.  The 
separate account represents funds segregated for the benefit of certain policyholders who bear the investment risk.  The assets 
are legally segregated and are not subject to claims which may arise from any other business of the Company.  The separate 
account assets and liabilities, which are equal, are recorded at fair value based upon the NAV of the underlying investment 
holdings as derived from closing prices on a national exchange or as provided by the issuer.  Policyholder account deposits and 
withdrawals, investment income, and realized investment gains and losses are excluded from the amounts reported in the 
Consolidated Statements of Comprehensive Income.  Revenues from separate accounts consist principally of contract charges, 
which include maintenance charges, administrative fees, and mortality and expense charges.
The total separate account assets were $381.6 million at December 31, 2022 and $505.0 million at December 31, 2021.  
Variable universal life and variable annuity assets comprised 32% and 68% of total separate account assets in 2022, compared 
to 31% and 69% of the total in 2021.  
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
43

The following table provides a reconciliation of activity within separate account liabilities at December 31.
2022
2021
Balance at beginning of year
$ 
504,976 
$ 
463,041 
Deposits on variable policyholder contracts
 
21,185 
 
29,108 
Transfers to general account
 
(5,096) 
 
(5,271) 
Investment performance
 
(89,271) 
 
77,678 
Policyholder benefits and withdrawals
 
(37,925) 
 
(46,453) 
Contract charges
 
(12,288) 
 
(13,127) 
Balance at end of year
$ 
381,581 
$ 
504,976 
We offer a GMWB rider that can be added to new or existing variable annuity contracts.  The value of the separate accounts 
with the GMWB rider was recorded at fair value of $92.8 million at December 31, 2022.  The fair value of the separate 
accounts with the GMWB rider was $122.5 million at December 31, 2021.  The GMWB guarantee liability was $(2.8) million 
at December 31, 2022 and $(0.1) million at December 31, 2021.  The change in this value is included in Policyholder Benefits 
in the Consolidated Statements of Comprehensive Income.  The value of variable annuity separate accounts with the GMWB 
rider is recorded in Separate Account Liabilities, and the value of the rider is included in Other Policyholder Funds in the 
Consolidated Balance Sheets.
We have two blocks of variable universal life policies and variable annuity contracts from which fees are received.  The fees are 
based upon both specific transactions and the fund value of the blocks of policies.  We have a direct block of ongoing business 
identified in the Consolidated Balance Sheets as Separate Account Assets, totaling $381.6 million at December 31, 2022 and 
$505.0 million at December 31, 2021, and corresponding Separate Account Liabilities of an equal amount.  The fixed-rate 
funds for these policies are included in our general account as policyholder account balances.  The future policy benefits for the 
direct block approximated $0.5 million at December 31, 2022 and $0.4 million at December 31, 2021.
In addition, we have an assumed closed block of variable universal life and variable annuity business that totaled $317.9 million 
at December 31, 2022 and $392.7 million at December 31, 2021.  As required under modified coinsurance transaction 
accounting, the assumed separate account fund balances are not recorded as separate accounts on our consolidated financial 
statements.  Rather, the assumed fixed-rate funds for these policies of $37.0 million at December 31, 2022 and $34.1 million at 
December 31, 2021 are included in our general account as policyholder account balances.  The future policy benefits for the 
assumed block approximated $0.5 million at both December 31, 2022 and December 31, 2021.  
Guarantees are offered under variable universal life and variable annuity contracts: a guaranteed minimum death benefit 
(GMDB) rider is available on certain variable universal life contracts and on all variable annuities.  The GMDB rider for 
variable universal life contracts guarantees the death benefit for specified periods of time, regardless of investment 
performance, provided cumulative premium requirements are met.  The GMDB rider for variable annuity contracts guarantees 
the death benefit for specified periods of time, regardless of investment performance. 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
44

Separate account balances for variable annuity contracts were $258.1 million at December 31, 2022 and $347.0 million at 
December 31, 2021.  The total reserve held for variable annuity GMDB was $0.2 million at December 31, 2022 and less than 
$0.1 million at December 31, 2021.  Additional information related to the GMDB and related separate account balances and net 
amount at risk (the amount by which the GMDB exceeds the account balance) as of December 31, 2022 and 2021 is provided 
below:
2022
2021
Separate
Account
Balance
Net
Amount
at Risk
Weighted 
Average 
Attained 
Age
Separate
Account
Balance
Net
Amount
at Risk
Weighted 
Average 
Attained 
Age
Return of net deposits
$ 199,394 
$ 
3,674 
63.9
$ 264,983 
$ 
96 
63.5
Return of the greater of the highest
      anniversary contract value or net
      deposits
 
8,095 
 
1,520 
71.7
 
11,712 
 
7 
71.2
Return of the greater of every fifth
      year highest anniversary contract
      value or net deposits
 
4,934 
 
97 
68.5
 
7,077 
 
19 
69.2
Return of the greater of net deposits
     accumulated annually at 5% or the
     highest anniversary contract value
 
45,676 
 
12,125 
65.7
 
63,227 
 
1,460 
64.8
Total
$ 258,099 
$ 
17,416 
64.6
$ 346,999 
$ 
1,582 
64.1
The following table presents the aggregate fair value of assets by major investment asset category supporting the variable 
annuity separate accounts with guaranteed benefits at December 31.  
2022
2021
Money market
$ 
2,036 
$ 
2,154 
Fixed income
 
11,490 
 
14,941 
Balanced
 
69,906 
 
91,029 
International equity
 
16,119 
 
21,238 
Intermediate equity
 
132,830 
 
180,005 
Aggressive equity
 
25,718 
 
37,632 
Total
$ 
258,099 
$ 
346,999 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
45

8. Unpaid Claims Liability and Short-Duration Contracts
The liability for unpaid claims is included with Policy and Contract Claims and Future Policy Benefits in the Consolidated 
Balance Sheets.  Claim adjustment expenditures are expensed as incurred and were not material in any year presented. 
The following tables present activity in the accident and health portion of the unpaid claims liability by segment for the years 
ended December 31.  Classified as policy and contract claims, but excluded from these tables due to immateriality, are amounts 
recorded for group life, individual life, and deferred annuities. 
2022
Individual 
Insurance
Group 
Insurance
Old 
American
Consolidated
Gross liability at beginning of year
$ 
669 
$ 
30,670 
$ 
2,293 
$ 
33,632 
Less reinsurance recoverable
 
(353) 
 
(21,991) 
 
(2,263) 
 
(24,607) 
Net liability at beginning of year
 
316 
 
8,679 
 
30 
 
9,025 
Incurred benefits related to:
Current year
 
18 
 
27,792 
 
34 
 
27,844 
Prior years 1
 
(99) 
 
(805) 
 
(20) 
 
(924) 
Total incurred benefits
 
(81) 
 
26,987 
 
14 
 
26,920 
Paid benefits related to:
Current year
 
3 
 
23,125 
 
4 
 
23,132 
Prior years
 
71 
 
4,770 
 
10 
 
4,851 
Total paid benefits
 
74 
 
27,895 
 
14 
 
27,983 
Net liability at end of year
 
161 
 
7,771 
 
30 
 
7,962 
Reinsurance recoverable
 
399 
 
20,006 
 
2,169 
 
22,574 
Gross liability at end of year
$ 
560 
$ 
27,777 
$ 
2,199 
$ 
30,536 
1  The incurred benefits related to prior years’ unpaid accident and health claims reflect the change in these liabilities.
2021
Individual 
Insurance
Group 
Insurance
Old 
American
Consolidated
Gross liability at beginning of year
$ 
606 
$ 
31,572 
$ 
2,595 
$ 
34,773 
Less reinsurance recoverable
 
(412) 
 
(23,565) 
 
(2,565) 
 
(26,542) 
Net liability at beginning of year
 
194 
 
8,007 
 
30 
 
8,231 
Incurred benefits related to:
Current year
 
240 
 
27,851 
 
31 
 
28,122 
Prior years 1
 
(1) 
 
(817) 
 
(25) 
 
(843) 
Total incurred benefits
 
239 
 
27,034 
 
6 
 
27,279 
Paid benefits related to:
Current year
 
46 
 
22,437 
 
1 
 
22,484 
Prior years
 
71 
 
3,925 
 
5 
 
4,001 
Total paid benefits
 
117 
 
26,362 
 
6 
 
26,485 
Net liability at end of year
 
316 
 
8,679 
 
30 
 
9,025 
Reinsurance recoverable
 
353 
 
21,991 
 
2,263 
 
24,607 
Gross liability at end of year
$ 
669 
$ 
30,670 
$ 
2,293 
$ 
33,632 
1  The incurred benefits related to prior years’ unpaid accident and health claims reflect the change in these liabilities.
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
46

2020
Individual 
Insurance
Group 
Insurance
Old 
American
Consolidated
Gross liability at beginning of year
$ 
659 
$ 
32,169 
$ 
3,952 
$ 
36,780 
Less reinsurance recoverable
 
(455) 
 
(23,983) 
 
(3,921) 
 
(28,359) 
Net liability at beginning of year
 
204 
 
8,186 
 
31 
 
8,421 
Incurred benefits related to:
Current year
 
66 
 
24,148 
 
31 
 
24,245 
Prior years 1
 
22 
 
(802) 
 
11 
 
(769) 
Total incurred benefits
 
88 
 
23,346 
 
42 
 
23,476 
Paid benefits related to:
Current year
 
35 
 
20,013 
 
1 
 
20,049 
Prior years
 
63 
 
3,512 
 
42 
 
3,617 
Total paid benefits
 
98 
 
23,525 
 
43 
 
23,666 
Net liability at end of year
 
194 
 
8,007 
 
30 
 
8,231 
Reinsurance recoverable
 
412 
 
23,565 
 
2,565 
 
26,542 
Gross liability at end of year
$ 
606 
$ 
31,572 
$ 
2,595 
$ 
34,773 
1  The incurred benefits related to prior years’ unpaid accident and health claims reflect the change in these liabilities.
The following table presents the reconciliation of amounts in the above tables to Policy and Contract Claims and claim reserves 
that are included in Future Policy Benefits as presented in the Consolidated Balance Sheets at December 31. 
2022
2021
2020
Individual Insurance Segment:
Individual accident and health
$ 
560 
$ 
669 
$ 
606 
Individual life
 
32,966 
 
42,915 
 
42,860 
Deferred annuity
 
2,936 
 
4,306 
 
5,743 
Subtotal
 
36,462 
 
47,890 
 
49,209 
Group Insurance Segment:
Group accident and health
 
27,777 
 
30,670 
 
31,572 
Group life
 
3,453 
 
3,978 
 
3,573 
Subtotal
 
31,230 
 
34,648 
 
35,145 
Old American Segment:
Individual accident and health
 
2,199 
 
2,293 
 
2,595 
Individual life
 
10,141 
 
11,050 
 
12,105 
Subtotal
 
12,340 
 
13,343 
 
14,700 
Total
$ 
80,032 
$ 
95,881 
$ 
99,054 
For short-duration contracts, IBNR liabilities for the group long-term disability product that were included in the liability for 
unpaid claims and claim adjustment expenses, net of reinsurance, totaled $0.6 million at both December 31, 2022 and 
December 31, 2021.  These liabilities were calculated by the reinsurers of the various blocks of group long-term disability 
business, using percent of premium methodologies with varying factors.  Claim frequencies were calculated for the long-term 
disability product using information that includes paid and pending claims at the claimant level.  Thus, frequency is measured 
by individual claimant.  Claims that are counted in a particular year as a liability but do not result in a liability in future years 
are not included once the claim is settled.  There have been no significant changes to the methodologies for calculating claim 
frequencies, incurred-but-not-reported liabilities, or any other unpaid claims liabilities for the long-term disability product 
during the years presented.  
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
47

The liabilities in the following table for group long-term disability claims involve present value of future benefits calculations.  
The carrying amount of liabilities at December 31, 2022 was $4.5 million, consisting of an undiscounted amount of $5.7 
million and an aggregated discount amount deducted of $1.2 million.  Discount rates ranged from 2.60% to 8.00% for the 
various blocks of group long-term disability business included in the totals.  
The following table provides incurred claims and allocated claim adjustment expenses, net of reinsurance, for the group long-
term disability product at December 31, 2022.  The information about incurred claims development for the years ended 
December 31, 2013 to December 31, 2021 is presented as unaudited supplementary information.
For the Years Ended December 31,
Total of 
IBNR 
Liabilities 
Plus 
Expected 
Development 
on Reported 
Claims
Cumulative 
Number of 
Reported 
Claims
Year 
Incurred
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2013
$ 
806 $ 
836 $ 
815 $ 
838 $ 
838 $ 
822 $ 
854 $ 
869 $ 
863 $ 
868 $ 
—  
236 
2014
 
868  
955  
799  
768  
770  
728  
735  
729  
736  
—  
186 
2015
 
989  
918  
701  
697  
643  
646  
641  
644  
—  
230 
2016
 1,694  1,552  1,382  1,412  1,284  
962  
947  
—  
244 
2017
 2,038  1,727  1,513  1,436  1,431  1,369  
—  
257 
2018
 2,473  2,192  2,135  1,745  1,620  
—  
297 
2019
 2,056  2,036  1,879  1,778  
—  
331 
2020
 1,483  1,094  
936  
—  
198 
2021
 1,873  1,496  
—  
227 
2022
 1,609  
643  
128 
$ 12,003 
The following table provides cumulative paid claims and allocated claim adjustment expenses, net of reinsurance, for the group 
long-term disability product at December 31, 2022.  The information about paid claims development for the years ended 
December 31, 2013 to December 31, 2021 is presented as unaudited supplementary information.  
For the Years Ended December 31,
Year 
Incurred
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2013 $ 
91 $ 
336 $ 
449 $ 
501 $ 
537 $ 
564 $ 
600 $ 
630 $ 
657 $ 
684 
2014
 
71  
276  
411  
481  
499  
517  
550  
579  
605 
2015
 
100  
390  
491  
531  
545  
561  
573  
584 
2016
 
164  
505  
626  
690  
736  
783  
804 
2017
 
162  
549  
703  
785  
867  
926 
2018
 
208  
681  
869  
1,012  
1,108 
2019
 
251  
752  
980  
1,108 
2020
 
162  
469  
604 
2021
 
237  
706 
2022
 
177 
Total $ 7,306 
All outstanding liabilities before 2013, net of reinsurance $ 
994 
Liabilities for claims and claim adjustment expenses, net of reinsurance $ 5,691 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
48

The following table provides a reconciliation of incurred and paid claims development information to the aggregate carrying 
amount of the liability for unpaid claims and claim adjustment expenses at December 31.  Included in other short-duration 
contracts are group life, group short-term disability, group dental, group vision, and individual accident and health for the 
Individual Insurance and Old American segments, none of which are individually significant.
2022
2021
Net outstanding liabilities:
Group long-term disability
$ 
5,691 
$ 
6,049 
Other short-duration contracts
 
6,351 
 
7,549 
Liabilities for unpaid claims and claim adjustment 
     expenses, net of reinsurance
 
12,042 
 
13,598 
Reinsurance recoverable on unpaid claims:
Group long-term disability
 
24,459 
 
26,214 
Other short-duration contracts
 
3,183 
 
3,294 
Total reinsurance recoverable on unpaid claims
 
27,642 
 
29,508 
Insurance lines other than short-duration
 
46,061 
 
58,289 
Unallocated claims adjustment expenses
 
— 
 
— 
Impact of discounting
 
(5,713) 
 
(5,514) 
Other
 
— 
 
— 
 
40,348 
 
52,775 
Total gross liability for unpaid claims and claim 
     adjustment expenses
$ 
80,032 
$ 
95,881 
The following table provides the historical average annual percentage payout of incurred claims by age, net of reinsurance, at 
December 31, 2022.
Years
1
2
3
4
5
Group long-term disability
 13.60 %
 31.90 %
 13.70 %
 7.30 %
 4.20 %
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
49

9. Participating Policies
We have insurance contracts where the policyholder is entitled to share in the earnings through dividends, which reflect the 
difference between the premium charged and the actual experience.  These insurance contracts were directly issued by the 
Company or were acquired through the purchase of participating blocks of business, largely through reinsurance assumption 
transactions.  Participating business approximated 6% of total statutory premiums in both 2022 and 2021.  Assumed 
participating business from the acquisition of closed blocks of business accounted for 98% of total participating statutory 
premiums in both 2022 and 2021.   Participating business equaled 5% of total life insurance in force at both December 31, 2022 
and December 31, 2021.  Assumed participating business accounted for 97% of total participating life insurance in force at both 
December 31, 2022 and December 31, 2021.
The amount of dividends to be paid is determined annually by our Board of Directors.  Provision has been made in the liability 
for future policy benefits to allocate amounts to participating policyholders on the basis of dividend scales contemplated at the 
time the policies were issued, as well as for policyholder dividends having been declared by the Board of Directors in excess of 
the original scale.
10. Debt
Notes Payable
We had no notes payable outstanding at December 31, 2022 or December 31, 2021.
We had unsecured revolving lines of credit with two major commercial banks that totaled $80.0 million at December 31, 2022,  
with no balances outstanding.  We had unsecured revolving lines of credit with three major commercial banks that totaled $70.0 
million at December 31, 2021, with no balances outstanding.  The lines of credit are at variable interest rates based upon short-
term indices maturing in June of 2023.  We anticipate renewing these lines of credit as they come due.  One line of credit 
includes a $20.0 million portion that can be unconditionally canceled by the lending institution at its discretion at any time. 
The Company has access to secured borrowings through repurchase agreements with two major financial counterparties.  The 
Company had no transactions that occurred under these agreements during 2022 or 2021 and had no outstanding borrowings as 
of December 31, 2022 or December 31, 2021.  Any borrowings drawn under these agreements require a variable interest rate 
based upon short-term indices and approval from the counterparty at the time of the transaction.  No securities are currently 
pledged under these agreements.
As a member of the FHLB, we have the ability to borrow on a collateralized basis from the FHLB.  Through this membership, 
we will have a specific borrowing capacity based upon the amount of collateral we establish.  At December 31, 2022, collateral 
comprised primarily of securities and mortgages in the amount of $295.6 million, with a fair value of $264.2 million, were 
pledged to the FHLB, providing a borrowing capacity of $209.7 million.  At December 31, 2021, collateral comprised primarily 
of securities and mortgages in the amount of $254.5 million, with a fair value of $254.6 million, were pledged to the FHLB, 
providing a borrowing capacity of $196.3 million.  The rates of interest are variable and set by the FHLB at the time of the 
advance.  The Company's capital investment totaled $9.0 million at December 31, 2022 and $6.2 million at December 31, 2021 
and is included in Other Investments in the Consolidated Balance Sheets.  Dividends received on the capital investment totaled 
$0.3 million for the year ended December 31, 2022, $0.2 million for the year ended December 31, 2021, and $0.1 million for 
the year ended December 31, 2020.
Funding Agreements
During 2021, the Company began entering into advance funding agreements with the FHLB.  Under the agreements, the 
Company pledges fixed maturity security and commercial mortgage loan collateral and receives cash, which is then reinvested, 
primarily into other fixed maturity securities.  Securities pledged as collateral may not be sold or re-pledged by the Company.  
The investments pledged and outstanding advance agreements are included in the overall borrowing capacity established with 
the FHLB.    We have established a maximum participation of $100.0 million with this program.  Total obligations outstanding 
under these agreements, which mature between 2024 and 2027, were $100.0 million at December 31, 2022 and $30.0 million at 
December 31, 2021 and are reported as Policyholder Account Balances in the Consolidated Balance Sheets.  Accrued interest 
on these obligations totaled $0.6 million at December 31, 2022 and less than $0.1 million at December 31, 2021.  Interest is 
credited based on variable rates set by the FHLB and totaled $2.0 million for the year ended December 31, 2022 and less than 
$0.1 million for the year ended December 31, 2021.  Interest income on the variable rate fixed maturity securities totaled $3.1 
million for the year ended December 31, 2022 and $0.2 million for the year ended December 31, 2021.  Cash interest payments 
were $1.5 million during the year ended December 31, 2022 and less than $0.1 million during the year ended December 31, 
2021.
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
50

11. Income Taxes
The following table provides information about income taxes for the years ended December 31.
2022
2021
2020
Current income tax expense
$ 
2,496 
$ 
7,587 
$ 
6,695 
Deferred income tax benefit
 
(7,035) 
 
(5,371) 
 
(5,951) 
Total income tax expense (benefit)
$ 
(4,539) 
$ 
2,216 
$ 
744 
The following table provides information about taxes paid for the years ended December 31.
2022
2021
2020
Cash paid for income taxes
$ 
2,766 
$ 
7,273 
$ 
3,667 
The following table provides a reconciliation of the federal income tax rate to our effective income tax rate for the years ended 
December 31.
2022
2021
2020
Federal income tax rate
 21 %
 21 %
 21 %
Tax credits, net of equity adjustment
 2 %
 (5) %
 (6) %
Impact of CARES Act
 — %
 — %
 (7) %
Permanent differences and other
 (1) %
 1 %
 (3) %
Effective income tax rate
 22 %
 17 %
 5 %
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
51

Presented below are tax effects of temporary differences that result in significant deferred tax assets and liabilities at 
December 31.  
2022
2021
Deferred tax assets:
Future policy benefits
$ 
17,650 
$ 
23,691 
Unrealized investment losses
 
56,830 
 
— 
Employee retirement benefits
 
4,010 
 
6,855 
Tax carryovers
 
508 
 
831 
Legal reserve
 
5,956 
 
— 
Other
 
5,988 
 
1,788 
Deferred tax assets
 
90,942 
 
33,165 
Valuation allowance
 
(189) 
 
— 
Deferred tax assets, net of valuation allowance
 
90,753 
 
33,165 
Deferred tax liabilities:
Basis differences between tax and
GAAP accounting for investments
 
(3,028) 
 
(2,683) 
Unrealized investment gains
 
— 
 
(40,597) 
Capitalization of DAC, net of amortization
 
(33,901) 
 
(28,814) 
VOBA
 
(3,877) 
 
(1,507) 
Property and equipment
 
(2,266) 
 
(2,876) 
Deferred tax liabilities
 
(43,072) 
 
(76,477) 
Net deferred tax asset (liability)
 
47,681 
 
(43,312) 
Current tax liability
 
(1,048) 
 
(1,510) 
Income taxes receivable (payable)
$ 
46,633 
$ 
(44,822) 
A valuation allowance must be established for any portion of the deferred tax asset which is believed not to be realizable.  
Management reviews the need for a valuation allowance based on our anticipated future earnings, reversal of future taxable 
differences, the available carryback and carryforward periods, and tax planning strategies that are prudent and feasible.  In 
management’s opinion, it is more likely than not that we will realize the benefit of our deferred taxes.
The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state jurisdictions.  In 
general, we are no longer subject to U.S. federal, state, or local income tax examinations by tax authorities for years prior to 
2019.  We are not currently under examination by the Internal Revenue Service (IRS).
Our policy is to recognize interest and penalties accrued related to unrecognized tax benefits in Income Tax Expense (Benefit) 
in the Consolidated Statements of Comprehensive Income.  The Company recognized no tax benefit related to tax penalty and 
interest expense in 2022, 2021, or 2020. 
We had no material uncertain tax positions at December 31, 2022 or December 31, 2021. 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
52

Income tax expense (benefit) is recorded in various places in our financial statements, as detailed below, for the years ended 
December 31. 
2022
2021
2020
Income tax expense (benefit)
$ 
(4,539) 
$ 
2,216 
$ 
744 
Stockholders’ equity:
Related to:
Change in net unrealized gains (losses) 
     on securities available  for sale
 
(97,428) 
 
(26,811) 
 
30,809 
Effect on DAC, VOBA, and DRL
 
8,330 
 
2,112 
 
(2,076) 
Change in policyholder liabilities
 
7,112 
 
2,458 
 
(4,222) 
Change in benefit plan obligations
 
(1,970) 
 
1,360 
 
289 
Total income tax expense (benefit) included in financial statements $ 
(88,495) 
$ 
(18,665) 
$ 
25,544 
The Coronavirus Aid, Relief and Economic Security Act (CARES Act) was signed into law on March 27, 2020, in an effort to 
provide fast and direct economic assistance to Americans during the COVID-19 health crisis.  The CARES Act had several 
income tax provisions that were utilized, which had a direct impact on our effective tax rate and income tax expense for 2020.  
The benefits that applied to us included, but were not limited to, the ability to carry back net operating losses and the 
acceleration of the recovery of Alternative Minimum Tax (AMT) credits.  The 7% decrease in the effective tax rate noted above 
for 2020 was primarily the result of our ability to carry back net operating losses from the taxable years 2018 through 2020, 
which were taxed at a federal income tax rate of 21%, to the taxable years 2013 through 2017, which were taxed at a federal 
income tax rate of 35%.
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
53

12. Pensions and Other Postemployment Benefits
We have pension and other postemployment benefit plans covering substantially all of our employees for which the annual 
measurement date is December 31.
The Kansas City Life Cash Balance Pension Plan (pension plan) was amended effective December 31, 2010 to provide that 
participants’ accrued benefits were frozen, and that no further benefits or accruals were earned after December 31, 2010.  
Although participants no longer accrue additional benefits under the pension plan at December 31, 2010, participants continue 
to earn years of service for vesting purposes under the pension plan with respect to their benefits accrued through December 31, 
2010.  In addition, the cash balance account continues to earn annual interest.  Pension plan benefits are based on a cash balance 
account consisting of credits to the account based upon an employee’s years of service, compensation and interest credits on 
account balances calculated using the greater of the average 30-year U.S. Treasury bond rate for November of each year or 
5.00%.  Annual interest was calculated using 5.00% for 2022 and 2021.
The benefits expected to be paid in each year from 2023 through 2027 are as follows: $10.2 million in 2023; $8.4 million in 
2024; $8.1 million in 2025; $7.7 million in 2026; and $7.7 million in 2027.  The aggregate benefits expected to be paid in the 
five years from 2028 through 2032 are $36.3 million.  The expected benefits to be paid are based on the same assumptions used 
to measure the Company’s benefit obligation at December 31, 2022 and are the actuarial present value of the vested benefits to 
which the employee is currently entitled but based upon the expected date of separation or retirement.  The 2023 contribution 
for the pension plan has not been determined.
The asset allocation of the fair value of pension plan assets compared to the target allocation range at December 31 was: 
2022
Target 
Allocation
2021
Target 
Allocation
Equity securities
 41 %
28% - 48%
 39 %
28% - 48%
Asset allocation and alternative assets
 15 %
10% - 20%
 15 %
10% - 20%
Debt securities
 44 %
30% - 60%
 46 %
30% - 60%
Cash and cash equivalents
—%
0% - 10%
—%
0% - 10%
Certain of our pension plan assets consist of investments in pooled separate accounts.  The NAV of the separate accounts is 
calculated in a manner consistent with GAAP for investment companies and is determinative of their fair value.  Several of the 
separate accounts invest in publicly quoted mutual funds or actively managed stocks.  The fair value of the underlying mutual 
funds or stock is used to determine the NAV of the separate account, which is not publicly quoted.  Some of the separate 
accounts also invest in fixed income securities.  The fair value of the underlying securities is based on quoted prices of similar 
assets and is used to determine the NAV of the separate account.  Sale of plan assets may be at values less than NAV.  Certain 
redemption restrictions may apply to specific stock and bond funds, including written notices prior to the withdrawal of funds 
and a potential redemption fee on certain withdrawals.
Plan fiduciaries set investment policies and strategies and oversee its investment allocation, which includes selecting investment 
managers, commissioning periodic asset-liability studies, and setting long-term strategic targets.  Long-term strategic 
investment objectives include preserving the funded status of the pension plan and balancing risk and return.  Target allocation 
ranges are guidelines, not limitations, and occasionally plan fiduciaries will approve allocations above or below a target range.  
The current assumption for the expected long-term rate of return on plan assets is 5.80%.  This assumption is determined by 
analyzing: 1) historical average returns achieved by asset allocation and active management; 2) historical data on the volatility 
of returns; 3) current yields available in the marketplace; 4) actual returns on plan assets; and 5) current and anticipated future 
allocation among asset classes.  The asset classes used for this analysis are domestic and international equities, investment 
grade corporate bonds, alternative assets, and cash.  The overall rate is derived as a weighted average of the estimated long-term 
returns on the asset classes represented in the investment portfolio of the pension plan.  Effective January 1, 2023, the 
assumption for the expected long-term rate of return on plan assets was 6.83%.   
The assumed discount rate used to determine the benefit obligation was 4.90% for pension benefits and 4.96% for 
postemployment benefits.  The discount rates were determined by reference to the FTSC Pension Discount Curve (formerly the 
Citigroup Pension Liability Yield Curve) on December 31, 2022.  Specifically, the spot rate curve represents the rates on zero 
coupon securities of the quality and type included in the pension index at various maturities.  By discounting benefit cash flows 
at these rates, a notional amount equal to the fair value of a cash flow defeasing portfolio of bonds was determined.  The 
discount rate for benefits was calculated as a single rate giving the same discounted value as the notional amount.
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
54

The postemployment medical plans for eligible employees and their dependents are contributory with contributions adjusted 
annually.  The benefits expected to be paid in each year from 2023 through 2027 are as follows: $0.9 million in 2023; $0.9 
million in 2024; $1.0 million in 2025; $0.9 million in 2026; and $0.9 million in 2027.  The aggregate benefits expected to be 
paid in the five years from 2028 through 2032 are $3.9 million.  The expected benefits to be paid are based on the same 
assumptions used to measure the Company’s benefit obligation at December 31, 2022.  The 2023 contribution for the 
postemployment medical plans is estimated to be $0.9 million.  The Company pays these medical costs as they become due and 
the postemployment plan incorporates cost-sharing features.  The postemployment plan disclosures included herein do not 
include the potential impact from the Medicare Act (the Act) that became law in December 2003.  The Act introduced a new 
federal subsidy to sponsors of certain retiree health care plans that provide a benefit that is at least actuarially equivalent to 
Medicare.  Since the Company does not provide benefits that are actuarially equivalent to Medicare, the Act did not impact our 
disclosures.
Non-contributory defined contribution retirement plans for eligible general agents and sales agents provide supplemental 
payments based upon earned first year individual life and annuity commissions.  Contributions to these plans were $0.1 million 
in 2022 and $0.1 million in 2021 and $0.2 million in 2020.  Non-contributory deferred compensation plans for eligible agents 
based upon earned first year commissions are also offered.  Contributions to these plans were $0.2 million in 2022, $0.2 million 
in 2021, and $0.3 million in 2020.
Savings plans for eligible employees and agents match employee and agent contributions up to 8.00% of salary and 2.50% of 
agents’ prior year paid commissions.  Contributions to the savings plans were $2.4 million in 2022, $2.5 million in 2021, and 
$2.6 million in 2020.  We may contribute an additional profit sharing amount up to 4% of salary for eligible employees, 
depending upon corporate profits.  The Company did not make a profit sharing contribution in 2022, 2021, or 2020. 
We recognize the funded status of our pension and postemployment plans in the Consolidated Balance Sheets, measured as the 
difference between plan assets at fair value and the projected benefit obligation.  Changes in the funded status that arise during 
the period, but are not recognized as components of net periodic benefit cost, are recognized within Other Comprehensive 
Income (Loss), net of taxes.
Significant sources of actuarial gains and losses for the pension plan included the impact of changes to the discount rate 
resulting in gains of $24.0 million during 2022 and gains of $5.8 million during 2021.  The pension plan included losses from 
asset returns compared to expected returns of $35.2 million in 2022 and gains of $5.5 million in 2021.  The mortality 
assumption and lump sum interest changes resulted in losses of $1.9 million in 2022 and losses of $0.7 million in 2021.  The 
pension plan included losses from census change of $1.0 million and future cost of living adjustment of $2.3 million in 2022.  
The pension plan included losses from census change of $3.9 million and future cost of living adjustment of $2.4 million in 
2021.  The significant sources of actuarial gains and losses for other postretirement benefits included the impact of changes to 
the discount rate resulting in gains of $3.9 million in 2022 and gains of $0.9 million in 2021 and gains from updated claims 
costs of $1.0 million in 2022 and losses of $0.6 million in 2021.  The postretirement benefits did not include any gains or losses 
from spouse participation assumption in 2022, compared to gains of $0.6 million in 2021.  
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
55

The following tables provide information regarding pension benefits and other postemployment benefits (OPEB) for the years 
ended December 31.
Pension Benefits
OPEB
2022
2021
2022
2021
Change in projected benefit obligation:
Benefit obligation at beginning of year
$ 
124,107 
$ 
130,242 
$ 
19,006 
$ 
20,105 
Service cost
 
— 
 
— 
 
124 
 
181 
Interest cost
 
2,942 
 
2,505 
 
498 
 
460 
Plan participants' contributions
 
— 
 
— 
 
605 
 
547 
Actuarial loss (gain)
 
(19,146) 
 
1,222 
 
(5,575) 
 
(781) 
Benefits paid
 
(10,225) 
 
(9,862) 
 
(1,683) 
 
(1,506) 
Benefit obligation at end of year
$ 
97,678 
$ 
124,107 
$ 
12,975 
$ 
19,006 
Change in plan assets:
Fair value of plan assets at beginning of year
$ 
171,562 
$ 
165,647 
$ 
— 
$ 
— 
Return on plan assets
 
(25,545) 
 
14,749 
 
— 
 
— 
Plan participants' contributions
 
— 
 
— 
 
605 
 
547 
Company contributions
 
100 
 
1,028 
 
1,078 
 
959 
Benefits paid
 
(10,225) 
 
(9,862) 
 
(1,683) 
 
(1,506) 
Fair value of net plan assets at end of year $ 
135,892 
$ 
171,562 
$ 
— 
$ 
— 
Under (over) funded status at end of year
$ 
(38,214) 
$ 
(47,455) 
$ 
12,975 
$ 
19,006 
Pension Benefits
OPEB
2022
2021
2022
2021
Amounts recognized in accumulated other
    comprehensive income (loss):
Net loss (gain)
$ 
73,413 
$ 
59,413 
$ 
(13,346) 
$ 
(8,672) 
Prior service credit
 
(1,142) 
 
(1,208) 
 
— 
 
— 
Total accumulated other comprehensive
    income (loss)
$ 
72,271 
$ 
58,205 
$ 
(13,346) 
$ 
(8,672) 
Pension Benefits
OPEB
2022
2021
2022
2021
Other changes in plan assets and benefit
     obligations recognized in other 
     comprehensive income (loss):
Unrecognized actuarial net loss (gain)
$ 
16,067 
$ 
(4,248) 
$ 
(5,575) 
$ 
(781) 
Amortization of net gain (loss)
 
(2,066) 
 
(2,374) 
 
902 
 
864 
Amortization of prior service credit
 
66 
 
66 
 
— 
 
— 
Total loss (gain) recognized in other
      comprehensive income (loss)
$ 
14,067 
$ 
(6,556) 
$ 
(4,673) 
$ 
83 
 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
56

Pension Benefits
OPEB
2022
2021
2022
2021
Weighted average assumptions used to determine
     benefit obligations at December 31:
Discount rate
 4.90 %
 2.47 %
 4.96 %
 2.68 %
Weighted average assumptions used to determine
     net periodic benefit cost for years ended
     December 31:
Discount rate
 2.47 %
 2.00 %
 2.68 %
 2.33 %
Expected return on plan assets
 5.80 %
 5.77 %
 — %
 
— 
The following table presents the fair value of each major category of pension plan assets at December 31. 
2022
2021
Fixed maturity securities:
U.S. Government
$ 
33 
$ 
85 
Industrial and public utility 
 
5,117 
 
6,615 
Investment funds:
Mutual funds
 
30,688 
 
41,092 
Collective trust
 
97,469 
 
120,301 
Limited partnerships
 
2,460 
 
3,375 
Other invested assets
 
30 
 
31 
Cash and cash equivalents
 
46 
 
6 
Receivables
 
49 
 
57 
Fair value of assets at end of year
$ 
135,892 
$ 
171,562 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
57

The following tables provide the fair value hierarchy, as described in Note 4 - Fair Value Measurements, for pension plan assets 
at December 31.
2022
Level 1
Level 2
Level 3
Total
Fixed maturity securities:
U.S. Government
$ 
— 
$ 
33 
$ 
— 
$ 
33 
Industrial and public utility
 
— 
 
5,117 
 
— 
 
5,117 
Mutual funds
 
30,688 
 
— 
 
— 
 
30,688 
Other invested assets
 
— 
 
— 
 
30 
 
30 
Total assets in the fair value hierarchy
 
30,688 
 
5,150 
 
30 
 
35,868 
Investments measured at net asset value: 1
Collective trust
 
97,469 
Limited partnerships
 
2,460 
Investments at fair value
$ 
135,797 
  
2021
 
Level 1
Level 2
Level 3
Total
Fixed maturity securities:
U.S. Government
$ 
— 
$ 
85 
$ 
— 
$ 
85 
Industrial and public utility
 
— 
 
6,615 
 
— 
 
6,615 
Mutual funds
 
41,092 
 
— 
 
— 
 
41,092 
Other invested assets
 
— 
 
— 
 
31 
 
31 
Total assets in the fair value hierarchy
 
41,092 
 
6,700 
 
31 
 
47,823 
Investments measured at net asset value: 1
Collective trust
 
120,301 
Limited partnerships
 
3,375 
Investments at fair value
$ 
171,499 
1 These investments are valued based on net asset value per unit.  These values are provided by the fund as a practical 
expedient and have not been classified in the fair value hierarchy.
The following table discloses the changes in Level 3 pension plan assets measured at fair value on a recurring basis for the 
years ended December 31.
2022
2021
Beginning balance
$ 
31 
$ 
10 
Gains (losses) realized and unrealized
 
(1) 
 
21 
Ending balance
$ 
30 
$ 
31 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
58

The following table provides the components of net periodic benefit cost (credit) for the years ended December 31.
Pension Benefits
OPEB
2022
2021
2020
2022
2021
2020
Service cost
$ 
— 
$ 
— 
$ 
— 
$ 
124 
$ 
181 
$ 
184 
Interest cost
 
2,942 
 
2,505 
 
3,494 
 
498 
 
460 
 
576 
Expected return on plan assets
 
(9,667) 
 
(9,279) 
 
(9,255) 
 
— 
 
— 
 
— 
Amortization of:
Unrecognized actuarial net loss 
    (gain)
 
2,066 
 
2,374 
 
2,514 
 
(902) 
 
(864) 
 
(1,039) 
Unrecognized prior service credit  
(66) 
 
(66) 
 
(66) 
 
— 
 
— 
 
— 
Net periodic benefit credit
 
(4,725) 
 
(4,466) 
 
(3,313) 
 
(280) 
 
(223) 
 
(279) 
Total recognized in other
      comprehensive income (loss)
 
14,067 
 
(6,556) 
 
(3,291) 
 
(4,673) 
 
83 
 
1,915 
Total recognized in net periodic
      benefit cost (credit) and other
      comprehensive income (loss)
$ 
9,342 
$ (11,022) 
$ 
(6,604) 
$ 
(4,953) 
$ 
(140) 
$ 
1,636 
For measurement purposes, the annual increase in the per capita cost of covered health care benefits was assumed to be 7.50%, 
decreasing gradually to 5.00% in 2030 and thereafter.
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
59

13. Share-Based Payment
The Kansas City Life Insurance Company Omnibus Incentive Plan (long-term incentive plan) includes a long-term incentive 
benefit for senior management.  The long-term incentive plan includes a cash award to participants that may be paid, in part, 
based on the increase in the share price of our common stock through units (phantom shares) assigned by the Board of 
Directors.  The cash award is calculated over a three-year interval on a calendar year basis.  At the conclusion of each three-
year interval, participants will receive a cash award based on the increase in the share price during a defined measurement 
period, multiplied by the number of units attributable to each participant.  The increase in the share price is determined based on 
the change in the share price from the beginning to the end of the three-year interval.  Amounts representing dividends are 
accrued and paid at the end of each three-year interval to the extent that they exceed negative stock price appreciation.  Plan 
payments are contingent on the continued employment of the participant unless termination is due to a qualifying event such as 
death, disability, or retirement.  In addition, all payments are lump sum with no deferrals allowed.  The Company does not 
make payments in shares, warrants, or options.
The following table provides information about the outstanding three-year intervals at December 31, 2022. 
Defined
Measurement
Period
Number
of Units
Grant
Price
2020-2022
129,114
$32.70
2021-2023
114,167
$37.39
2022-2024
116,859
$42.03
2023-2025*
179,314
$27.60
*  Effective January 1, 2023
The Company made a cash payment of $1.3 million under the long-term incentive plan during 2022 for the three-year interval 
ended December 31, 2021.  The Company did not make any cash payments under the long-term incentive plan during 2021 for 
the three-year interval ended December 31, 2020.  The Company did not make any cash payments under the long-term 
incentive plan during 2020 for the three-year interval ended December 31, 2019.  The change in accrual that reduced operating 
expense during 2022 was $1.1 million, net of tax.  The cost of share-based compensation accrued as an operating expense 
during 2021 was $1.5 million, net of tax.  The cost of share-based compensation accrued as an operating expense during 2020 
was $0.6 million, net of tax.
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
60

14. Reinsurance
The following table provides information about reinsurance for the years ended December 31. 
2022
2021
2020
Life insurance in force (in millions):
Direct
$ 
50,479 
$ 
50,757 
$ 
52,334 
Ceded
 
(31,667) 
 
(32,269) 
 
(32,884) 
Assumed
 
4,316 
 
5,082 
 
4,121 
Net
$ 
23,128 
$ 
23,570 
$ 
23,571 
Premiums:
Life insurance:
Direct
$ 
259,646 
$ 
253,348 
$ 
265,564 
Ceded
 
(106,060) 
 
(98,507) 
 
(94,074) 
Assumed
 
5,776 
 
7,030 
 
4,855 
Net
$ 
159,362 
$ 
161,871 
$ 
176,345 
Accident and health:
Direct
$ 
59,253 
$ 
57,043 
$ 
58,131 
Ceded
 
(10,007) 
 
(10,050) 
 
(10,720) 
Net
$ 
49,246 
$ 
46,993 
$ 
47,411 
Ceded Reinsurance Arrangements
Old American has a coinsurance agreement that reinsures certain whole life policies issued by Old American prior to 
December 1, 1986.  These policies had a face value of $9.4 million at December 31, 2022 and $10.6 million at December 31, 
2021.  The reserve for future policy benefits ceded under this agreement was $5.8 million at December 31, 2022 and $6.5 
million at December 31, 2021.
Sunset Life entered into a yearly renewable term reinsurance agreement January 1, 2002, whereby it ceded 80% of its retained 
mortality risk on traditional and universal life policies.  In June 2012, Sunset Life recaptured approximately 9% of the 
outstanding bulk reinsurance agreement.  Effective with the sale of Sunset Life on November 1, 2021, Kansas City Life 
assumed the responsibility for this agreement.  The insurance in force ceded approximated $494.0 million at December 31, 
2022 and $531.6 million at December 31, 2021.  Premiums totaled $5.3 million during 2022, $5.4 million during 2021, and 
$5.6 million during 2020.
On January 1, 2022, Old American entered into a reinsurance agreement whereby it began reinsuring 50% of new business on 
selected products.  Effective October 1, 2022, this agreement was modified to reinsure 75% of new business on selected 
products.  As part of this arrangement, the assuming entity agreed to provide certain administrative support in the form of 
underwriting services.  In 2022, this support was not material to the reinsurance arrangement or to the Company's operating 
expenses.  The insurance in force ceded approximated $66.7 million at December 31, 2022 and premiums totaled $5.4 million 
during 2022.
In the second quarter of 2022, the Company reinsured a block of fixed annuity business with an average crediting rate of 3.75% 
to a certified domestic reinsurer.  This reinsurance arrangement was effective April 1, 2022.  The contract reinsured $516.2 
million in policyholder account balance liabilities in exchange for fixed maturity securities and cash, less deferred revenue.  We 
immediately recognized $11.6 million of certain non-refundable premiums associated with the transaction in investment 
income.  The remaining deferred revenue will be amortized in future periods.  The net consideration transferred to the reinsurer 
was $493.9 million.  This resulted in recognizing a deposit asset on reinsurance of $516.2 million at April 1, 2022.  Fixed 
maturity securities were transferred at market value as of the closing date of the transaction, resulting in a pre-tax net realized 
investment loss of $12.3 million.  We will continue to administer this business on an ongoing basis, and we will receive an 
ongoing expense allowance associated with these efforts.  The remaining deferred revenue liability is included in Other 
Liabilities in the Consolidated Balances Sheets and will be amortized over future periods consistent with the amortization of the 
Deposit Asset on Reinsurance.  The Company determined that the reinsurance agreement does not expose the reinsurer to a 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
61

significant loss from insurance risk. Therefore, the Company has recognized the reinsurance agreement using the deposit-type 
method of accounting.  The reserve credit transferred to the reinsurer is reported as Deposit Asset on Reinsurance in the 
Consolidated Balance Sheets.  As amounts are received or paid, consistent with the underlying reinsured contracts, the Deposit 
Asset on Reinsurance is adjusted.  The Deposit Asset on Reinsurance is also accreted to the estimated ultimate cash flows using 
the interest method and the adjustment is reported as Net Investment Income in the Consolidated Statements of Comprehensive 
Income.  In 2022, the investment income recognized was $25.6 million less $3.8 million in transferred investment income.  The 
interest credited on the block was $13.9 million.  As of December 31, 2022, the Deposit Asset on Reinsurance balance was 
$484.4 million.  
Reinsurance recoverables were $389.6 million at year-end 2022, consisting of reserves ceded of $356.2 million and claims 
ceded of $33.4 million.  Reinsurance recoverables were $400.0 million at year-end 2021, consisting of reserves ceded of $353.1 
million and claims ceded of $46.9 million.  
The maximum retention on any one life during 2022 and 2021 was $0.5 million for ordinary life plans and $0.1 million for 
group coverage. 
The following table reflects our reinsurance partners whose recoverable was 5% or greater of our total reinsurance recoverable 
and deposit asset on reinsurance at December 31, 2022, along with their A.M. Best credit rating.
A.M. Best
Rating
Reinsurance
Recoverable 
and Deposit 
Asset on 
Reinsurance
% of
Recoverable
RGA Reinsurance Company
A+
$ 
600,539 
 69 %
Transamerica Life Insurance Company
A
 
120,846 
 14 %
Other (26 Companies)
 
152,636 
 17 %
Total
$ 
874,021 
 100 %
A contingent liability exists with respect to reinsurance, which may become a liability of the Company in the unlikely event that 
the reinsurers should be unable to meet obligations assumed under reinsurance contracts.  The solvency of reinsurers is 
reviewed annually.
We monitor several factors that we consider relevant as to the ongoing ability of a reinsurer to meet the obligations of the 
reinsurance agreements.  These factors include the credit rating of the reinsurer and significant changes or events of the 
reinsurer.  If we believe it is probable that any reinsurer would not be able to satisfy its obligations with us, a separate 
contingency reserve may be established.  At year-end 2022 and 2021, no reinsurer met these conditions.  In addition, we review 
the credit rating and financial statements of a reinsurer before entering into any new agreements.
Assumed Reinsurance Arrangements
We acquired a block of traditional life and universal life products in 1997 through a 100% coinsurance and servicing 
arrangement.  Investments equal to the statutory policy reserves are held in a trust to secure payment of the estimated liabilities 
relating to the policies.  This block had $516.7 million of life insurance in force at December 31, 2022 and $559.1 million of 
life insurance in force at December 31, 2021.  This block generated life insurance premiums of $1.6 million in 2022, $1.7 
million in 2021, and $1.9 million in 2020.
We acquired a block of variable universal life insurance policies and variable annuity contracts from American Family Life 
Insurance Company in 2013.  The transfer was comprised of a 100% modified coinsurance transaction on the separate account 
business and a 100% coinsurance transaction for the corresponding fixed account business.  Included in the transaction are 
ongoing servicing arrangements for this business.  This block consisted of $317.9 million of separate account balances at 
December 31, 2022, which are included in the financial statements of American Family, compared to $392.7 million at 
December 31, 2021.  This block consisted of $0.5 million of future policy benefits and $37.0 million in fixed fund balances that 
are included in Policyholder Account Balances in the Company’s Consolidated Balance Sheets at December 31, 2022.  This 
block consisted of $0.5 million of future policy benefits and $34.1 million in fixed fund balances at December 31, 2021. 
Effective December 31, 2020, Kansas City Life entered into a 100% assumption reinsurance agreement with Sunset Life for all 
direct policyholder liabilities written by Sunset Life.  Effective November 1, 2021, Kansas City Life recognized 100% of the 
future policy benefits and policyholder account balances as well as other related liabilities in the reinsurance assumption that 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
62

occurred December 31, 2020.  As Sunset Life was still part of the consolidated entity prior to November 1, 2021, this 
agreement had no impact on consolidated reporting.  Effective with the sale of Sunset Life on November 1, 2021, the treaty is 
now accounted for as an assumption reinsurance agreement from an unaffiliated third party.  The Company is pursuing a 
novation plan, whereby policies under this agreement will be converted to direct business of Kansas City Life.  In order to 
novate, certain conditions must be met as identified under state regulations.  As these conditions are met, a policy is converted 
to a direct policy and the reinsurance aspect is eliminated.  As of December 31, 2022, approximately two-thirds of the reserves 
for these policies have been converted.  This block had $1.0 billion of life insurance in force at December 31, 2022 and 
generated life insurance premiums of $1.2 million in 2022.  This block had $1.1 billion of life insurance in force at 
December 31, 2021 and generated life insurance premiums of $2.4 million in 2021.  This block consisted of $30.5 million of 
future policy benefits and $201.7 million of policyholder account balances at December 31, 2022.  This block consisted of 
$33.6 million of future policy benefits and $210.1 million of policyholder account balances at December 31, 2021.
15. Comprehensive Income (Loss)
Comprehensive Income (Loss) is comprised of Net Income (Loss) and Other Comprehensive Income (Loss).  Other 
Comprehensive Income (Loss) includes the unrealized investment gains or losses on securities available for sale (net of 
reclassifications for realized investment gains or losses), net of adjustments to DAC, VOBA, DRL, future policy benefits, and 
policyholder account balances.  In addition, Other Comprehensive Income (Loss) includes the change in the liability for benefit 
plan obligations.  Other Comprehensive Income (Loss) reflects these items net of tax.
The following tables provide information about Comprehensive Income (Loss).
Year Ended December 31, 2022
Pre-Tax
Amount
Tax Expense 
(Benefit)
Net-of-Tax
Amount
Net unrealized losses arising during the year:
Fixed maturity securities
$ 
(474,535) 
$ 
(99,652) 
$ 
(374,883) 
Less reclassification adjustments:
Net realized investment losses, excluding impairment
    losses
 
(10,557) 
 
(2,217) 
 
(8,340) 
Other-than-temporary impairment losses recognized in
    earnings
 
— 
 
— 
 
— 
Other-than-temporary impairment losses recognized in
    other comprehensive loss
 
(34) 
 
(7) 
 
(27) 
Net unrealized losses excluding impairment losses
 
(463,944) 
 
(97,428) 
 
(366,516) 
Effect on DAC, VOBA, and DRL
 
39,664 
 
8,330 
 
31,334 
Change in policyholder liabilities
 
33,877 
 
7,112 
 
26,765 
Change in benefit plan obligations
 
(9,394) 
 
(1,970) 
 
(7,424) 
Other comprehensive loss
$ 
(399,797) 
$ 
(83,956) 
$ 
(315,841) 
Net loss
 
(16,218) 
Comprehensive loss
$ 
(332,059) 
 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
63

Year Ended December 31, 2021
Pre-Tax
Amount
Tax Expense 
(Benefit)
Net-of-Tax
Amount
Net unrealized losses arising during the year:
Fixed maturity securities
$ 
(123,342) 
$ 
(25,902) 
$ 
(97,440) 
Less reclassification adjustments:
Net realized investment gains, excluding impairment
    losses
 
4,810 
 
1,010 
 
3,800 
Other-than-temporary impairment losses recognized in
    earnings
 
(467) 
 
(98) 
 
(369) 
Other-than-temporary impairment losses recognized in
    other comprehensive loss
 
(15) 
 
(3) 
 
(12) 
Net unrealized losses excluding impairment losses
 
(127,670) 
 
(26,811) 
 
(100,859) 
Effect on DAC, VOBA, and DRL
 
10,058 
 
2,112 
 
7,946 
Change in policyholder liabilities
 
11,705 
 
2,458 
 
9,247 
Change in benefit plan obligations
 
6,475 
 
1,360 
 
5,115 
Other comprehensive loss
$ 
(99,432) 
$ 
(20,881) 
$ 
(78,551) 
Net income
 
10,704 
Comprehensive loss
$ 
(67,847) 
 
Year Ended December 31, 2020
Pre-Tax
Amount
Tax Expense 
(Benefit)
Net-of-Tax
Amount
Net unrealized gains arising during the year:
Fixed maturity securities
$ 
151,735 
$ 
31,864 
$ 
119,871 
Less reclassification adjustments:
Net realized investment gains, excluding impairment
    losses
 
5,045 
 
1,059 
 
3,986 
Other-than-temporary impairment losses recognized in
    earnings
 
— 
 
— 
 
— 
Other-than-temporary impairment losses recognized in
    other comprehensive income
 
(19) 
 
(4) 
 
(15) 
Net unrealized gains excluding impairment losses
 
146,709 
 
30,809 
 
115,900 
Effect on DAC, VOBA, and DRL
 
(9,885) 
 
(2,076) 
 
(7,809) 
Change in policyholder liabilities
 
(20,104) 
 
(4,222) 
 
(15,882) 
Change in benefit plan obligations
 
1,376 
 
289 
 
1,087 
Other comprehensive income
$ 
118,096 
$ 
24,800 
$ 
93,296 
Net income
 
15,170 
Comprehensive income
$ 
108,466 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
64

The following table provides accumulated balances related to each component of Accumulated Other Comprehensive Income 
(Loss) at December 31, 2022, net of tax.  
Unrealized
Gain (Loss) 
on Non-
Impaired
Securities
Unrealized
Gain (Loss) 
on Impaired
Securities
Benefit
Plan
Obligations
DAC/
VOBA/DRL
Impact
Policyholder
Liabilities
Total
Beginning of year
$ 
151,660 
$ 
1,062 
$ 
(39,128) 
$ 
(12,578) 
$ 
(26,765) 
$ 
74,251 
Other comprehensive
     income (loss) before
     reclassification 
 
(373,794) 
 
(1,089) 
 
(7,424) 
 
31,334 
 
26,765 
 
(324,208) 
Amounts reclassified
     from accumulated
     other comprehensive
     income (loss)
 
8,340 
 
27 
 
— 
 
— 
 
— 
 
8,367 
Net current-period other 
     comprehensive income
     (loss)
 
(365,454) 
 
(1,062) 
 
(7,424) 
 
31,334 
 
26,765 
 
(315,841) 
End of year
$ 
(213,794) 
$ 
— 
$ 
(46,552) 
$ 
18,756 
$ 
— 
$ 
(241,590) 
The following table provides accumulated balances related to each component of Accumulated Other Comprehensive Income 
(Loss) at December 31, 2021, net of tax. 
Unrealized
Gain on 
Non-
Impaired
Securities
Unrealized
Gain (Loss) 
on Impaired
Securities
Benefit
Plan
Obligations
DAC/
VOBA/DRL
Impact
Policyholder
Liabilities
Total
Beginning of year
$ 
252,334 
$ 
1,247 
$ 
(44,243) 
$ 
(20,524) 
$ 
(36,012) 
$ 
152,802 
Other comprehensive
     income (loss) before
     reclassification
 
(96,874) 
 
(566) 
 
5,115 
 
7,946 
 
9,247 
 
(75,132) 
Amounts reclassified
     from accumulated
     other comprehensive
     income (loss)
 
(3,800) 
 
381 
 
— 
 
— 
 
— 
 
(3,419) 
Net current-period other 
     comprehensive income
     (loss)
 
(100,674) 
 
(185) 
 
5,115 
 
7,946 
 
9,247 
 
(78,551) 
End of year
$ 
151,660 
$ 
1,062 
$ 
(39,128) 
$ 
(12,578) 
$ 
(26,765) 
$ 
74,251 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
65

The following table presents the pre-tax and the related Income Tax Benefit (Expense) components of the amounts reclassified 
from Accumulated Other Comprehensive Income (Loss) to the Consolidated Statements of Comprehensive Income for the 
years ended December 31.
2022
2021
2020
Reclassification adjustments related to unrealized gains (losses)
     on investment securities:
Net realized investment gains (losses), excluding impairment
    losses 1
$ 
(10,557) 
$ 
4,810 
$ 
5,045 
Income tax benefit (expense) 2
 
2,217 
 
(1,010) 
 
(1,059) 
Net of taxes
 
(8,340) 
 
3,800 
 
3,986 
Other-than-temporary impairment losses 1
 
(34) 
 
(482) 
 
(19) 
Income tax benefit 2
 
7 
 
101 
 
4 
Net of taxes
 
(27) 
 
(381) 
 
(15) 
Total pre-tax reclassifications
 
(10,591) 
 
4,328 
 
5,026 
Total income tax benefit (expense)
 
2,224 
 
(909) 
 
(1,055) 
Total reclassification, net taxes
$ 
(8,367) 
$ 
3,419 
$ 
3,971 
1  (Increases) decreases Net Investment Gains (Losses) in the Consolidated Statements of Comprehensive Income.
2  (Increases) decreases Income Tax Expense (Benefit) in the Consolidated Statements of Comprehensive Income.
16. Earnings per Share
Due to our capital structure and the absence of other potentially dilutive securities, there is no difference between basic and 
diluted earnings per common share for any of the years reported.  The average number of shares outstanding was 9,683,414 
shares during 2022, 2021, and 2020.  The number of shares outstanding at both December 31, 2022 and December 31, 2021 
was 9,683,414.
17. Segment Information
We have three reportable business segments, which are defined based on the nature of the products and services offered:  
Individual Insurance, Group Insurance, and Old American.  The Individual Insurance segment consists of individual insurance 
products for Kansas City Life, Grange Life, and the assumed reinsurance transactions.  Sunset Life was also included in the 
Individual Insurance segment until its sale on November 1, 2021.  The results of Sunset Life operations are included in the 
Individual Insurance segment for the first ten months of 2021 and the year ended December 31, 2020.  For additional 
information on the sale of Sunset Life, please see the Business Changes section of Note 1 - Nature of Operations and 
Significant Accounting Policies.  The Group Insurance segment consists of sales of group life, dental, vision, disability, 
accident, and critical illness products.  The Old American segment consists of individual insurance products designed largely as 
final expense products. 
Insurance revenues, as shown in the Consolidated Statements of Comprehensive Income, consist of premiums and contract 
charges, less reinsurance ceded.  Separate investment portfolios are maintained for Kansas City Life, Old American, and 
Grange Life for segment reporting purposes.  Investment assets and income are allocated to the Group Insurance segment based 
upon its cash flows and future policy benefit liabilities.  Policyholder benefits are specifically identified to the respective 
segment.  Most home office functions are fully integrated for all segments in order to maximize economies of scale.  Therefore, 
operating expenses are allocated to the segments based upon internal cost studies, which are consistent with industry cost 
methodologies.
Inter-segment revenues are not material.  We operate solely in the United States of America and no individual customer 
accounts for 10% or more of our revenue.
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
66

The following tables provide selected financial statement items of each of the operating segments for the years ended 
December 31.  Intercompany transactions have been eliminated to arrive at Consolidated Statements of Comprehensive Income.
2022
Individual
Insurance
Group
Insurance
Old
American
Consolidated
Insurance revenues
$ 
174,168 
$ 
64,662 
$ 
93,822 
$ 
332,652 
Interest credited to policyholder
      account balances
 
72,974 
 
— 
 
— 
 
72,974 
Amortization of deferred
      acquisition costs
 
20,225 
 
— 
 
20,368 
 
40,593 
Income tax expense (benefit)
 
(4,262) 
 
447 
 
(724) 
 
(4,539) 
Net income (loss)
 
(15,176) 
 
1,681 
 
(2,723) 
 
(16,218) 
Assets
 
4,524,863 
 
9,322 
 
430,964 
 
4,965,149 
2021
Individual
Insurance
Group
Insurance
Old
American
Consolidated
Insurance revenues
$ 
168,675 
$ 
62,145 
$ 
99,847 
$ 
330,667 
Interest credited to policyholder
      account balances
 
79,725 
 
— 
 
— 
 
79,725 
Amortization of deferred
      acquisition costs
 
12,520 
 
— 
 
20,697 
 
33,217 
Income tax expense (benefit)
 
3,537 
 
(106) 
 
(1,215) 
 
2,216 
Net income (loss)
 
15,698 
 
(401) 
 
(4,593) 
 
10,704 
Assets
 
4,959,634 
 
10,030 
 
463,766 
 
5,433,430 
2020
Individual
Insurance
Group
Insurance
Old
American
Consolidated
Insurance revenues
$ 
189,081 
$ 
62,695 
$ 
98,702 
$ 
350,478 
Interest credited to policyholder
      account balances
 
78,792 
 
— 
 
— 
 
78,792 
Amortization of deferred
      acquisition costs
 
21,444 
 
— 
 
20,697 
 
42,141 
Income tax expense (benefit)
 
793 
 
904 
 
(953) 
 
744 
Net income (loss)
 
15,327 
 
3,405 
 
(3,562) 
 
15,170 
Assets
 
4,989,424 
 
11,438 
 
462,150 
 
5,463,012 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
67

18. Quarterly Consolidated Financial Data (unaudited)
The unaudited quarterly results of operations for the years ended December 31 are summarized in the following table. 
2022
First
Second
Third
Fourth
Total revenues
$ 
119,231 
$ 
114,579 
$ 
119,998 
$ 
122,834 
Total benefits and expenses
 
128,665 
 
109,538 
 
114,689 
 
144,507 
Net income (loss)
 
(7,676) 
 
4,485 
 
4,315 
 
(17,342) 
Per common share, 
     basic and diluted
 
(0.79) 
 
0.46 
 
0.45 
 
(1.79) 
2021
First
Second
Third
Fourth
Total revenues
$ 
122,331 
$ 
124,804 
$ 
121,282 
$ 
142,895 
Total benefits and expenses
 
122,974 
 
119,537 
 
128,271 
 
127,610 
Net income (loss)
 
(668) 
 
4,286 
 
(6,006) 
 
13,092 
Per common share, 
     basic and diluted
 
(0.07) 
 
0.44 
 
(0.62) 
 
1.36 
19. Statutory Information and Stockholder Dividends Restriction
The following table provides Kansas City Life’s net loss from operations, net income (loss), and capital and surplus 
(stockholders' equity) on the statutory basis used to report to regulatory authorities for the years ended December 31.
2022
2021
2020
Net loss from operations
$ 
(20,319) 
$ 
(5,494) 
$ 
(1,287) 
Net income (loss)
 
(21,532) 
 
24,165 
 
11,554 
Capital and surplus
 
220,044 
 
245,300 
 
265,341 
Kansas City Life recognizes its 100% ownership in Old American and Grange Life under the equity method with subsidiary 
earnings recorded through surplus on a statutory accounting basis.  Capital and surplus at December 31, 2022 in the above table 
includes capital and surplus of $21.5 million for Old American and $25.9 million for Grange Life.
Stockholder dividends may not exceed statutory unassigned surplus.  Additionally, under Missouri law, a company must have 
the prior approval of the Missouri Director of Insurance to pay dividends in any consecutive twelve-month period exceeding the 
greater of statutory net gain from operations for the preceding year or 10% of statutory stockholders' equity at the end of the 
preceding year.  Both Kansas City Life and Old American are Missouri-domiciled insurance companies.  The maximum 
stockholder dividends payable by Kansas City Life without prior approval in 2023 is $22.0 million, 10% of December 31, 2022 
capital and surplus.  The maximum stockholder dividends payable by Old American without prior approval in 2023 is $2.1 
million, net gain from operations for the year ended December 31, 2022.  
Grange Life is subject to the laws in Ohio, its state of domicile.  Ohio law limits the Company’s payment of dividends to its 
parent company, Kansas City Life.  The maximum dividend that may be paid by an Ohio-domiciled insurance company to its 
shareholders in any year without the prior approval of the Ohio Director of the Department of Insurance is limited to the greater 
of the net income of the preceding calendar year or 10% of capital and surplus as of the preceding December 31.  Ohio law also 
requires that any dividend be paid from earned surplus.  The maximum dividend payments that can be made in 2023, without 
obtaining prior approval, are $2.6 million subject to the amount of earned surplus available at the time of payment.
We believe that the statutory limitations described above impose no practical restrictions on the declaration and subsequent 
payment of any dividend that may be declared on any of our three insurance companies.  
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
68

Insurance companies are monitored and evaluated by state insurance departments as to the financial adequacy of statutory 
capital and surplus in relation to each company's risks.  One such measure is through the risk-based capital (RBC) guidelines.  
RBC requirements are intended to be used by insurance regulators as an early warning tool to identify deteriorating or weakly 
capitalized insurance companies for the purpose of initiating regulatory action.  RBC guidelines consist of target statutory 
surplus levels based on the relationship of statutory capital and surplus to the sum of weighted risk exposures.  The RBC 
calculation determines both an authorized control level and a total adjusted capital prepared on the RBC basis.  Generally, 
regulatory action is at 150% of the authorized control level.  Each of the insurance companies was within the range of 
approximately 445% to 680%, well in excess of the control level at December 31, 2022.  
We are required to deposit a defined amount of assets with state regulatory authorities.  Such assets had a statutory carrying 
value of $8.8 million at December 31, 2022, $9.5 million at December 31, 2021, and $16.2 million at December 31, 2020.
20. Commitments, Contingent Liabilities, Guarantees, and Indemnifications
Commitments
In the normal course of business, we have open purchase and sale commitments.  At December 31, 2022, we had purchase 
commitments to fund mortgage loans of $1.5 million and commitments to fund investments in private equity security interests 
of $27.1 million.
Subsequent to December 31, 2022, we entered into commitments to fund additional mortgage loans of $1.7 million.
Contingent Liabilities
On March 1, 2019, the Delaware Department of Insurance requested Scottish Re (US) be placed in rehabilitation.  Kansas City 
Life has ceded some of its business to Scottish Re (US), a subsidiary of Scottish Re Group.  Based on the information currently 
available, the Company does not have sufficient information to make an assessment of the likelihood of any loss related to this 
matter.  The Company will continue to closely monitor developments related to the rehabilitation proceeding.
Kansas City Life is involved in various pending or threatened legal proceedings, including purported class actions, arising from 
the conduct of business both in the ordinary course and otherwise.  In some of the matters, very large and/or indeterminate 
amounts, including punitive and treble damages, are sought.
Due to the unpredictable nature of litigation, the probable outcome of a litigation matter and the amount or range of potential 
loss can be difficult to ascertain.  We establish liabilities for litigation and other loss contingencies when available information 
indicates both that a loss is probable and the amount of the loss can be reasonably estimated.  Some matters could require us to 
pay damages or make other expenditures or establish accruals in amounts that cannot be estimated as of December 31, 2022.  
Based on information currently known by management, management does not believe any such expenditures are likely to have 
a material adverse effect on Kansas City Life’s financial condition.
Cost of Insurance Litigation
We are the defendant in five related litigation matters (including three certified class actions and two putative class actions) that 
allege that we determined cost of insurance rates in excess of amounts permitted by the terms of certain life insurance policies.
•
Karr v. Kansas City Life is a class action filed in the 16th Circuit Court for the State of Missouri (Jackson County).  In 
July 2021, the Court certified a class that includes current Missouri residents who purchased certain universal life 
policies (described below) in the State of Missouri that were active on or after January 1, 2002.  In February of 2022, 
the Court granted partial Summary Judgment to plaintiffs on three of the five counts at issue in the class action.  In 
December of 2022, a jury trial based solely on determining damages under the Court’s summary judgment ruling was 
held in Jackson County, Missouri.  The jury in that trial rendered a verdict of $28.4 million in favor of the plaintiffs 
related to the first three counts.  As of this date, the Court has not entered a judgment on the verdict nor has it issued a 
final verdict in the case.  We have opposed entry of judgment and plan to challenge any judgment that may be entered 
by the Court both with the trial court and, if necessary, through the appellate process.  While the verdict is not final, 
and while we will continue to challenge any judgment, the Company is establishing a contingent liability reserve 
related to the jury’s verdict in the amount of $28.4 million related to this matter.
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
69

•
Meek v. Kansas City Life is a class action filed in the U.S. District Court for the Western District of Missouri.  In 
February of 2022, the Court certified a class on the first four claims of Plaintiff’s petition that includes current and 
former policyholders who purchased certain universal life policies (described below) that were issued in the State of 
Kansas and whose policies were active on or after January 1, 2002.  The Court has not ruled on the merits of plaintiff’s 
claims, but instead has determined that the class of policyholders certified in lawsuit meet the requirements of Federal 
Rule of Civil Procedure 23(b)(3), which governs class actions in federal courts.  We will vigorously defend this matter 
and believe we have meritorious defenses to all of the claims asserted.  The Meek and Karr matters include different 
defenses and matters of law.  We have not concluded that a loss is probable in this matter and have not accrued any 
liability related thereto.  However, there can be no assurances as to the outcome of this matter. In the event of an 
unfavorable outcome, the amount that may be required to be paid to discharge or settle the matter could have a 
material adverse impact on our business and financial statements.
•
Sheldon v. Kansas City Life is a class action filed in the 16th Circuit Court for the State of Missouri (Jackson County). 
In May of 2022, the Court certified a class that includes policyholders who purchased certain Century II Variable 
Universal Life policies that were issued in the State of Missouri and whose policies were active on or after January 1, 
2002.  The Court’s decision means that the class of policyholders certified in the Sheldon v. Kansas City Life lawsuit 
meets the requirements of Federal Rule of Civil Procedure 23(b)(3), which governs class actions in federal courts. 
While the ruling establishes a class at this stage of the litigation and permits the future issuance of a notice to class 
members, the Court has not decided who will win this case.  The Sheldon and Karr matters include different defenses 
and matters of law.  We have not concluded that a loss is probable in this matter and have not accrued any liability 
related thereto.  However, there can be no assurances as to the outcome of this matter. In the event of an unfavorable 
outcome, the amount that may be required to be paid to discharge or settle the matter could have a material adverse 
impact on our business and financial statements.
•
Fine v. Kansas City Life is a putative class action filed in the U.S. District Court for the Central District of California.  
The proposed class would include current and former policyholders who purchased certain universal life and certain 
variable universal life policies issued in the State of California.  This case was filed on March 29, 2022, and is in its 
preliminary stages.  The Court has not certified a class of policyholders or identified the policies at issue in this matter. 
The Fine and Karr matters include different defenses and matters of law.  We have not concluded that a loss is 
probable in this matter and have not accrued any liability related thereto.  However, there can be no assurances as to 
the outcome of this matter. In the event of an unfavorable outcome, the amount that may be required to be paid to 
discharge or settle the matter could have a material adverse impact on our business and financial statements.
•
McMillan v. Kansas City Life is a putative class action filed in the U.S. District Court for the District of Maryland.  
The proposed class would include current and former policyholders who purchased certain universal life and certain 
variable universal life policies originally issued in the State of Maryland.  This case was filed on May 5, 2022, and is 
in its preliminary stages.  The Court has not certified a class of policyholders or identified the policies at issue in this 
matter.  The McMillan and Karr matters include different defenses and matters of law.  We have not concluded that a 
loss is probable in this matter and have not accrued any liability related thereto.  However, there can be no assurances 
as to the outcome of this matter.  In the event of an unfavorable outcome, the amount that may be required to be paid 
to discharge or settle the matter could have a material adverse impact on our business and financial statements.
The classes certified in Karr v. Kansas City Life and Meek v. Kansas City Life include policyholders who purchased one of the 
following Universal Life policies issued by Kansas City Life: Better Life Plan, Better Life Plan Qualified, LifeTrack, AGP, 
MGP, PGP, Chapter One, Classic, Rightrack (89), Performer (88), Performer (91), Prime Performer, Competitor (88), 
Competitor (91), Executive (88), Executive (91), Protector 50, LewerMax, Ultra 20 (93), Competitor II, Executive II, Performer 
II, or Ultra 20 (96).
Regulatory Matters
We are subject to regular reviews and inspections by state and federal regulatory authorities.  State insurance examiners - or 
independent audit firms engaged by such examiners - may, from time to time, conduct examinations or investigations into 
industry practices and customer complaints.  A regulatory violation discovered during a review, inspection, or investigation 
could result in a wide range of remedies that could include the imposition of sanctions against us or our employees, which could 
have a material adverse effect on our financial statements.  
The life insurance industry has been the subject of significant regulatory and legal activities regarding the use of the U.S. Social 
Security Administration's Death Master File (“Death Master File”) in the claims process.  Certain states have proposed, and 
many other states are considering, new legislation and regulations related to unclaimed life insurance benefits and the use of the 
Death Master File in the claims process.  Based on our analysis to date, we believe that we have adequately reserved for 
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
70

contingencies from a change in statute or regulation.  Ongoing regulatory developments and other future requirements related to 
this matter may result in additional payments or costs that could be significant and could have a material adverse effect on our 
financial statements.
Guarantees and Indemnifications
We are subject to various indemnification obligations issued in conjunction with certain transactions, primarily assumption 
reinsurance agreements, stock purchase agreements, mortgage servicing agreements, tax credit assignment agreements, 
construction and lease guarantees, and borrowing agreements whose terms range in duration and often are not explicitly 
defined.  Generally, a maximum obligation is not explicitly stated.  Therefore, the overall maximum amount of the obligation 
under the indemnifications cannot be reasonably estimated.  We are unable to estimate with certainty the ultimate legal and 
financial liability with respect to these indemnifications.  We believe that the likelihood is remote that material payments would 
be required under such indemnifications and, therefore, such indemnifications would not result in a material adverse effect on 
our financial position or financial statements.
21. Subsequent Events
We evaluated events that occurred subsequent to December 31, 2022 through March 6, 2023, the date the consolidated financial 
statements were issued and have identified the following subsequent event.
On January 23, 2023, the Kansas City Life Board of Directors declared a quarterly dividend of $0.14 per share, paid on 
February 8, 2023 to stockholders of record on February 2, 2023.
There have been no other subsequent events that occurred during such period that require disclosure in, or adjustment to, the 
consolidated financial statements as of and for the year ended December 31, 2022.
Kansas City Life Insurance Company
Notes to Consolidated Financial Statements – (Continued)
71

Independent Auditor’s Report
The Audit Committee and Stockholders 
Kansas City Life Insurance Company 
Kansas City, Missouri
Opinion
We have audited the consolidated financial statements of Kansas City Life Insurance Company and subsidiaries, which 
comprise the consolidated balance sheets as of December 31, 2022 and 2021, and the related consolidated statements of 
comprehensive income, stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2022, 
and the related notes to the consolidated financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position 
of Kansas City Life Insurance Company and subsidiaries as of December 31, 2022 and 2021, and the results of their operations 
and their cash flows for each of the three years in the period  ended December 31, 2022 in accordance with accounting 
principles generally accepted in the United States of America. 
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS).  
Our responsibilities under those standards are further described in the “Auditor’s Responsibilities for the Audit of the 
Consolidated Financial Statements” section of our report.  We are required to be independent of Kansas City Life Insurance 
Company and subsidiaries and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements 
relating to our audits.  We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for 
our audit opinion. 
Responsibilities of Management for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with 
accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance 
of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from 
material misstatement, whether due to fraud or error. 
In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, 
considered in the aggregate, that raise substantial doubt about Kansas City Life Insurance Company and subsidiaries’ ability to 
continue as a going concern within one year after the date that these consolidated financial statements are issued.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from 
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.  Reasonable 
assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in 
accordance with GAAS will always detect a material misstatement when it exists.  The risk of not detecting a material 
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, 
intentional omissions, misrepresentations, or the override of internal control.  Misstatements are considered material if there is a 
substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based 
on the consolidated financial statements.
In performing an audit in accordance with GAAS, we:
•
Exercise professional judgment and maintain professional skepticism throughout the audit.
•
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or 
error, and design and perform audit procedures responsive to those risks.  Such procedures include examining, on a 
test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.
•
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate 
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Kansas City Life 
Insurance Company and subsidiaries’ internal control.  Accordingly, no such opinion is expressed.
72

•
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates 
made by management, as well as evaluate the overall presentation of the consolidated financial statements.
•
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial 
doubt about Kansas City Life Insurance Company and subsidiaries’ ability to continue as a going concern for a 
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and 
timing of the audits, significant audit findings, and certain internal control-related matters that we identified during the audits.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the incurred and paid claims development 
information for the years 2013 through 2021 in Note 8 be presented to supplement the basic consolidated financial statements.  
Such information is the responsibility of management and, although not a part of the basic consolidated financial statements, is 
required by the Financial Accounting Standards Board who considers it to be an essential part of financial reporting for placing 
the basic financial statements in an appropriate operational, economic, or historical context.  We have applied certain limited 
procedures to the required supplementary information in accordance with auditing standards generally accepted in the United 
States of America, which consisted of inquiries of management about the methods of preparing the information and comparing 
the information for consistency with management’s responses to our inquiries, the basic consolidated financial statements, and 
other knowledge we obtained during our audit of the basic consolidated financial statements.  We do not express an opinion or 
provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express 
an opinion or provide any assurance.
/s/ FORVIS
Kansas City, Missouri 
March 6, 2023
73

Management’s Discussion and Analysis of Financial Condition and Results of Operations
Amounts are stated in thousands, except share data, or as otherwise noted.
Management’s Discussion and Analysis of Financial Condition and Results of Operations provides, in narrative form, the 
perspective of Kansas City Life Insurance Company management on its financial condition, results of operations, liquidity, and 
certain other factors that may affect its future results.  The terms "the Company," "we," "us," and "our" are used to refer to 
Kansas City Life Insurance Company and its subsidiaries.  Kansas City Life Insurance Company (Kansas City Life) is the 
parent company.  Old American Insurance Company (Old American) and Grange Life Insurance Company (Grange Life) are 
wholly-owned insurance subsidiaries.  Sunset Life Insurance Company of America (Sunset Life) is an insurance subsidiary that 
was wholly-owned by the Company until it was sold on November 1, 2021.  Sunset Life is now Ibexis Life & Annuity 
Insurance Company.  For additional information on the sale of Sunset Life, please see the Business Changes section of Note 1 - 
Nature of Operations and Significant Accounting Policies.  We also have non-insurance subsidiaries that individually and 
collectively are not material.  
On May 25, 2022, retroactive to April 1, 2022, we entered into a reinsurance arrangement whereby we reinsured a sizeable 
block of fixed annuity contracts to a certified domestic reinsurer.  This closed block of contracts reflected business issued prior 
to 2015 and consisted entirely of higher guaranteed interest rate products.  We are accounting for this transaction as a deposit-
type contract.  The contract reinsured $516.2 million in policyholder account balance liabilities in exchange for fixed maturity 
securities and cash, less deferred revenue.  We immediately recognized $11.6 million of certain non-refundable premiums 
associated with the transaction in investment income.  The remaining deferred revenue will be amortized in future periods.  The 
net consideration transferred to the reinsurer was $493.9 million.  This resulted in recognizing a deposit asset on reinsurance of 
$516.2 million at April 1, 2022.  Fixed maturity securities were transferred at market value as of the closing date of the 
transaction, resulting in a pre-tax net realized investment loss of $12.3 million.  We will continue to administer this business on 
an ongoing basis, and we will receive an expense allowance associated with these efforts.  For additional information on this 
reinsurance arrangement, please see Note 14 - Reinsurance.
The following is a discussion and analysis of the results of operations for the year ended December 31, 2022 and our financial 
condition at December 31, 2022.  This discussion should be read in conjunction with the consolidated financial statements and 
accompanying notes included in this document.
Overview
Our profitability depends on many factors, which include but are not limited to:
•
The sale of traditional and interest sensitive life, annuity, and accident and health products;
•
The rate of mortality, lapse, and surrender of future policy benefits and policyholder account balances;
•
The rate of morbidity, disability, and incurrence of other policyholder benefits;
•
Interest rates credited to policyholders;
•
The availability of reinsurance opportunities and the effectiveness of reinsurance programs;
•
The amount of investment assets under management;
•
The ability to maximize investment returns and manage risks such as interest rate risk, credit risk, equity risk, and 
inflation risk;
•
Timely and cost-effective access to liquidity; 
•
Management of distribution costs and operating expenses; 
•
Management of the operations of our affiliates;
•
Management of blocks of business associated with reinsurance transactions; and
•
The ability to integrate acquisitions and to achieve anticipated operating efficiencies.
General economic conditions may affect future results.  Financial market volatility can significantly impact our investments, 
revenues, and policyholder benefits.  The increased inflationary environment and volatile equity markets have presented 
significant challenges to the interest rate environment, financial markets as a whole, and specifically to companies invested in 
fixed maturity securities and other fixed income investments.  In addition, the COVID-19 pandemic and other events have 
caused increased economic uncertainty, financial market volatility, significant stress to businesses, supply chain shortages, 
decreased consumer confidence, and increased labor shortages.  These conditions may persist into the future, affecting our 
financial position and financial statements.  However, future conditions are highly uncertain and difficult to predict.
74

Statement on Forward-Looking Information
This report reviews the consolidated financial condition and results of operations of Kansas City Life Insurance Company.  
Historical information is presented and discussed.  Where appropriate, factors that may affect future financial performance are 
also identified and discussed.  Certain statements made in this report include “forward-looking statements.”  Forward-looking 
statements include any statement that may predict, forecast, indicate or imply future results, performance, or achievements 
rather than historical facts and may contain words like “believe,” “expect,” “estimate,” “project,” “forecast,” “anticipate,” 
“plan,” “will,” “shall,” and other words, phrases, or expressions with similar meaning.
Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that may cause actual 
results to differ materially from those contemplated by the forward-looking statements.  Factors that could cause future results 
to differ materially from expected results include, but are not limited to:
•
Changes in economic conditions, including the performance of financial markets, inflation, and interest rates;
•
Competition and changes in consumer behavior, which may affect our ability to sell our products and retain business;
•
Competition in the recruitment and retention of general agents, agents, and employees;
•
Customer and agent response to new products, distribution channels, and marketing initiatives;
•
Fluctuations in experience regarding current mortality, morbidity, persistency, and interest rates relative to expected 
amounts used in pricing our products;
•
Changes in assumptions related to DAC, VOBA, and DRL;
•
Regulatory, accounting, or tax changes that may affect the cost of, or the demand for, our products or services; 
•
Unanticipated changes in industry trends and ratings assigned by nationally recognized rating organizations;
•
The ability to integrate acquisitions and achieve anticipated operating efficiencies and the ability to preserve goodwill 
that results from acquisitions; 
•
The availability and effectiveness of reinsurance arrangements;
•
Results of litigation we may be involved in; and 
•
The extent of the impacts resulting from catastrophic events such as natural disasters, pandemics, terrorist attacks, 
cyber attacks, international conflicts, and wars. 
No assurances can be given that such statements will prove to be correct.  Given these risks and uncertainties, investors should 
not place undue reliance on forward-looking statements as a prediction of actual results.
75

Consolidated Results of Operations
Summary of Results
We incurred a net loss of $16.2 million in 2022 compared to net income of $10.7 million in 2021.  Net loss per share was $1.67 
in 2022 compared to $1.11 net income per share in 2021.  
The following table presents condensed consolidated results of operations for the years ended December 31.
2022
2021
% Change
Revenues:
Insurance and other revenues
$ 
339,406 
$ 
343,427 
 (1) %
Net investment income
 
153,879 
 
142,468 
 8 %
Net investment gains (losses)
 
(16,643) 
 
25,417 
 (165) %
Benefits and expenses:
Policyholder benefits and interest credited
      to policyholder account balances
 
331,373 
 
360,611 
 (8) %
Amortization of deferred acquisition costs  
40,593 
 
33,217 
 22 %
Operating expenses
 
125,433 
 
104,564 
 20 %
Income tax expense (benefit)
 
(4,539) 
 
2,216 
 (305) %
Net income (loss)
$ 
(16,218) 
$ 
10,704 
 (252) %
In the fourth quarter of 2022, we accrued pretax operating expenses of $28.4 million related to a class action lawsuit.  
Excluding this accrual, net income for 2022 would have amounted to $6.2 million.  
The Company sold Sunset Life on November 1, 2021.  The results of Sunset Life operations are included in our Consolidated 
Statements of Comprehensive Income for the first ten months of 2021.
Insurance Revenues
Insurance revenues consist of premiums, net of reinsurance, from the sale of traditional individual and group life insurance 
products, immediate annuities, and accident and health products, as well as contract charges from interest sensitive and deposit-
type products.  Insurance revenues are impacted by the level of new sales, the type of products sold, the persistency of policies, 
general economic conditions, and competitive forces.  
The Company uses a sales approach which generally involves personal interaction with our clients.  The COVID-19 pandemic 
has resulted in many challenges and disruptions for our sales approach.  The environment continues to evolve as the pandemic 
lengthens, and in many ways has still not returned to historical levels.  We continue to make strides to minimize the effects of 
this challenging environment by implementing more remote styles of client interaction, creating electronic applications, and 
streamlining medical examination requirements for underwriting.  In addition, we review, update, and enhance our products on 
an ongoing basis to ensure that they comply with regulatory requirements, remain profitable, and continue to fulfill the needs of 
our clients.  We also periodically discontinue sales and reprice certain products that become outdated, unprofitable, or that 
cannot support our business and client needs.
76

The following table presents gross premiums on new and renewal business, less reinsurance ceded, for the years ended 
December 31.  New premiums are also detailed by product.
2022
2021
% Change
New premiums:
Traditional life insurance
$ 
19,105 
$ 
21,230 
 (10) %
Immediate annuities
 
20,373 
 
13,807 
 48 %
Group life insurance
 
2,513 
 
2,436 
 3 %
Group accident and health insurance
 
9,074 
 
7,462 
 22 %
Total new premiums
 
51,065 
 
44,935 
 14 %
Renewal premiums
 
273,610 
 
272,486 
 — %
Total premiums
 
324,675 
 
317,421 
 2 %
Reinsurance ceded
 
(116,067) 
 
(108,557) 
 7 %
Net premiums
$ 
208,608 
$ 
208,864 
 — %
Consolidated total premiums increased $7.2 million or 2% in 2022 compared to 2021, reflecting a $6.1 million or 14% increase 
in new premiums and a $1.1 million or less than 1% increase in renewal premiums.  The growth in new premiums was largely 
due to a $6.6 million or 48% increase in new immediate annuity premiums.  Immediate annuity receipts can have sizeable 
fluctuations, as receipts from policyholders largely result from one-time premiums.  Internal rollovers from various individual 
annuity products were $4.3 million higher in 2022 than in 2021.  In addition, new group accident and health premiums 
increased $1.6 million or 22%, reflecting improvements in all lines of business.  Partially offsetting these premium 
improvements, new individual life insurance premiums decreased $2.1 million or 10% compared to the prior year.  The increase 
in renewal premiums was primarily due to a $0.7 million or 1% increase in renewal group accident and health insurance 
premiums, due to improvements for all lines of business.  In addition, renewal traditional life insurance premiums increased 
$0.2 million or less than 1% and renewal group life insurance premiums increased $0.3 million or 2% compared to one year 
earlier.   
Reinsurance ceded premiums increased $7.5 million or 7% in 2022 compared to 2021.  This increase reflected a reinsurance 
agreement that became effective January 1, 2022, whereby Old American began reinsuring 50% of new business on selected 
products.  Effective October 1, 2022, this agreement was modified to reinsure 75% of new business on selected products.
Deposits related to interest sensitive life (universal life, indexed universal life, and variable universal life), fixed annuity 
contracts, and variable annuities are not recorded as revenue.  Revenues from such contracts consist of amounts assessed on 
policyholder account balances for mortality, policy administration, and surrender charges, and are recognized as contract 
charges in the Consolidated Statements of Comprehensive Income.  The following table provides detail by new and renewal 
deposits for the years ended December 31.  New deposits are also detailed by product.
2022
2021
% Change
New deposits:
Interest sensitive life
$ 
10,313 
$ 
10,598 
 (3) %
Fixed annuities
 
40,458 
 
38,010 
 6 %
Variable annuities
 
10,691 
 
17,942 
 (40) %
Total new deposits
 
61,462 
 
66,550 
 (8) %
Renewal deposits
 
145,769 
 
149,048 
 (2) %
Total deposits
$ 
207,231 
$ 
215,598 
 (4) %
Reinsurance ceded
 
(5,894) 
 
— 
 — %
Net deposits
$ 
201,337 
$ 
215,598 
 (7) %
General economic conditions and interest rates available in the marketplace influence new deposits on interest sensitive 
products.  In addition, fluctuations in the equity markets influence the variable life and annuity products.  Generally, low 
interest rate and increased inflationary environments present significant challenges to products such as these, and potential 
sizeable fluctuations in new sales can result between periods.  Further, as described above, the COVID-19 pandemic and the 
related economic impacts, as well as general economic conditions, have affected both new and renewal deposits.
77

Total new deposits declined $5.1 million or 8% in 2022 compared to 2021.  This decline reflected a $7.3 million or 40% 
decrease in new variable annuity deposits and a $0.3 million or 3% decrease in new interest sensitive deposits compared to the 
prior year.  Partially offsetting these declines, new fixed annuity deposits increased $2.4 million or 6%.  Total renewal deposits 
decreased $3.3 million or 2% in 2022 versus the prior year.  Renewal interest sensitive life deposits declined $1.5 million or 
1%, renewal variable annuity deposits declined $1.1 million or 13%, and renewal fixed annuity deposits declined $0.6 million 
or 4% versus one year earlier.  The results for renewal interest sensitive life deposits included a $2.7 million or 17% increase in 
renewal indexed universal life deposits that was offset by a $3.4 million or 4% decrease in renewal universal life deposits and a 
$0.8 million or 4% decrease in renewal variable universal life deposits. 
Reinsurance ceded on deposits totaled $5.9 million in 2022, resulting from the deposit-type reinsurance agreement previously 
mentioned that became effective April 1, 2022.
Contract charges result from charges and fees on interest-sensitive and deposit-type products.  Contract charges consist of cost 
of insurance, expense loads, the amortization of unearned revenues, and surrender charges assessed on policyholder account 
balance withdrawals.  We maintain both open blocks and closed blocks of business.  The closed blocks of business reflect 
products and entities that have been purchased and for which we are not actively pursuing marketing efforts to generate new 
sales.  We continue to service these policies to support customers and to meet long-term profit objectives as these blocks of 
business decline over time.  Contract charges are also potentially impacted by unlocking adjustments, as discussed below.
Total contract charges increased $2.2 million or 2% in 2022 compared to 2021.  Contract charges on open blocks increased $3.0 
million or 4% versus the prior year, largely from an increase in deferred revenue.  Contract charges on closed blocks decreased 
$0.8 million or 2% in 2022 compared to 2021, reflecting the runoff of the blocks of business.  Total contract charges on closed 
blocks equaled 41% of total consolidated contract charges during 2022, down from 42% in 2021. 
Unlocking increased deferred revenue $1.0 million in 2022 compared to an increase of $1.1 million in 2021.  
Investment Revenues
Total net investment income increased $11.4 million or 8% in 2022 compared with 2021.
Net investment income resulting from the deposit-type reinsurance agreement which was effective April 1, 2022, was $21.8 
million in 2022.
Net investment income on invested assets decreased $10.4 million or 7% in 2022 compared with 2021.  This result reflected 
lower average invested assets and a decrease in prepayment fees on mortgage loans.  The lower invested assets primarily 
resulted from the sale of fixed maturity securities with a book value of approximately $502.0 million during the second quarter 
of 2022 as part of the deposit-type reinsurance transaction. 
Fixed maturity securities provide a majority of our investment income.  Net investment income from these investments 
decreased $6.5 million or 6% in 2022 compared to 2021 as lower average invested assets were partially offset by higher yields 
earned.  The lower invested assets primarily resulted from the sale of fixed maturity securities as part of the deposit-type 
reinsurance transaction.
Net investment income from commercial mortgage loans declined $3.7 million or 13% in 2022 versus 2021, primarily from 
lower prepayment fees as well as lower yields earned.  As interest rates have increased in 2022, fewer mortgage loans have 
refinanced.  This has resulted in decreases in prepayment fees of $1.5 million in 2022 compared to 2021.
Net investment income from real estate decreased $3.2 million or 36% in 2022 compared to the prior year.  This decline largely 
resulted from the loss of revenue from a real estate property that was sold in the fourth quarter of 2021.
Investment Gains (Losses)
Net investment losses for 2022 totaled $16.6 million compared to net investment gains of $25.4 million for 2021.  The sale of 
investment securities resulted in a net loss of $11.8 million in 2022 compared to a net gain of $0.5 million in 2021.  The loss in 
2022 reflected the transfer of investment securities for the deposit-type reinsurance agreement that generated a pretax net loss of 
$12.3 million, as previously mentioned.  In addition, the change in fair value of derivative instruments resulted in a loss of $6.9 
million in 2022 compared to a gain of $4.8 million in the prior year.  Also, sales of real estate and joint ventures generated a net 
gain of $0.7 million in 2022, compared to a net gain of $16.6 million in 2021.   
We recognized impairments of less than $0.1 million on our securities portfolio during 2022 compared to impairments of $0.5 
million during 2021.  The impairments recognized in 2022 were on residential mortgage-backed securities, which were sold 
during the year.  We will continue to monitor and evaluate our portfolio for potential strain in the individual holdings and 
sectors due to the added stress in the current economic environment.
78

Other Revenues
Other revenues decreased $6.0 million or 47% in 2022 compared to the prior year.  This decline was largely due to the gain 
from the sale of Sunset Life of approximately $5.5 million that occurred during 2021.
Policyholder Benefits
Policyholder benefits, net of reinsurance, consist of death benefits, immediate annuity benefits, accident and health benefits, 
surrenders, other benefits, and the associated increase or decrease in reserves for future policy benefits and policyholder account 
balances.  The largest component of policyholder benefits was death benefits for the periods presented.  Death benefits reflect 
mortality results, after consideration of the impact of reinsurance. 
Total policyholder benefits decreased $22.5 million or 8% in 2022 compared to 2021.  The largest factor in this decline was a 
$19.8 million or 11% decline in death benefits, net of reinsurance.  Death benefits have been heavily affected by the COVID-19 
pandemic and have remained significantly higher since the pandemic began in 2020.  Mortality cost resulting specifically from 
the COVID-19 pandemic was 6% of the total mortality cost for 2022, down from 13% in 2021.  Mortality cost is defined as 
death benefits net of reinsurance and reserves released.  In addition, benefit and contract reserves decreased $2.8 million or 19% 
compared to the prior year.  The change in the fair value of derivative instruments decreased reserves compared to the prior 
year.  In addition, reserves decreased at the Old American segment due to ceded reserves on the reinsurance arrangement 
mentioned above and more reserves released for death benefits and surrenders.  Partially offsetting these items was an increase 
in annuity and supplemental contract reserves.
Interest Credited to Policyholder Account Balances
Interest is credited to policyholder account balances according to terms of the policies or contracts for universal life, fixed 
deferred annuities, and other investment-type products.  There are minimum levels of interest crediting stipulated in certain 
policies or contracts, as well as allowances for adjustments to be made to reflect current market conditions in certain policies or 
contracts.  Accordingly, the Company reviews and adjusts crediting rates as necessary and appropriate.  Amounts credited are a 
function of account balances and current period crediting rates.  As account balances fluctuate, so will the amount of interest 
credited to policyholder account balances.  Interest credited to policyholder account balances decreased $6.8 million or 8% in 
2022 compared to 2021.  This decline reflects lower interest crediting on the indexed universal life product.
Amortization of DAC
The amortization of DAC increased $7.4 million or 22% in 2022 compared to 2021.  This increase reflected the impact of 
unlocking, better mortality experience, and decreased investment performance in the separate accounts.  Unlocking adjustments 
increased DAC amortization $1.7 million in 2022 compared to unlocking adjustments that decreased DAC amortization $0.4 
million in 2021.  In addition, DAC amortization increased $0.6 million in 2022 due to the write-off of DAC resulting from the 
deposit-type reinsurance arrangement.  
Operating Expenses
Operating expenses consist of incurred commission expense from the sale of insurance products, net of the deferral of certain 
commissions and certain expenses directly associated with the successful acquisition of new business, expenses from our 
operations, the amortization of VOBA and intangibles, and other expenses.  Operating expenses increased $20.9 million or 20% 
in 2022 compared to 2021.  The largest contributor to this increase was a $28.4 million legal reserve that was accrued related to 
a class action lawsuit.  Excluding this accrual, operating expenses declined $7.5 million or 7% in 2022 compared to 2021.  This 
decrease largely resulted from lower employee compensation expenses, in part due to staffing fluctuations and to a decline in 
the market value of deferred compensation benefits.  In addition, the amortization of VOBA decreased $0.5 million or 22% 
compared to the prior year, primarily due to unlocking.  This unlocking increased operating expenses less than $0.1 million in 
2022 compared to an increase of $0.8 million in 2021.  Partially offsetting these declines in operating expenses, agent meeting 
expenses increased as our agent conferences resumed in 2022 after being cancelled in 2021.   
Income Taxes
We recorded an income tax benefit of $4.5 million or 22% of income before tax in 2022.  We recorded an income tax expense 
of $2.2 million or 17% of income before tax in 2021.  The decrease in income tax expense in 2022 was primarily related to a 
decrease in pretax income in 2022 as compared to pretax income in 2021.  The accrued legal reserve previously mentioned 
resulted in a $6.0 million deferred tax benefit in 2022.  The increase in the effective tax rate in 2022 was primarily due to tax 
credits from affordable housing investments and permanent differences, including the dividends-received deduction, having 
more impact on the effective tax rate due to a decrease in pre-tax income.
The effective income tax rate was higher than the prevailing corporate federal income tax rate of 21% for 2022.  The higher 
effective income tax rate was primarily due to the effect of favorable tax adjustments relative to a pretax loss.  Favorable tax 
adjustments include tax credits from affordable housing investments, research and development credits, and permanent 
differences, which includes the dividend-received deduction.  The effective income tax rate was lower than the prevailing 
79

corporate federal income tax rate of 21% for 2021.  The lower effective income tax rate was primarily due to tax credits from 
affordable housing investments and from permanent differences, which includes the dividends-received deduction.  
80

Analysis of Investments
This analysis of investments should be read in conjunction with Note 3 - Investments included in this document.  
The following table provides asset class detail of the investment portfolio at December 31.
2022
%
of Total
2021
%
of Total
Fixed maturity securities
$ 2,204,819 
 71 %
$ 3,088,197 
 77 %
Equity securities
 
1,918 
 — %
 
3,676 
 — %
Mortgage loans
 
591,928 
 19 %
 
596,037 
 15 %
Real estate
 
141,649 
 4 %
 
142,278 
 4 %
Policy loans
 
82,739 
 3 %
 
82,060 
 2 %
Short-term investments
 
58,497 
 2 %
 
74,501 
 2 %
Other investments
 
18,749 
 1 %
 
12,840 
 
— 
Total
$ 3,100,299 
 100 %
$ 3,999,589 
 100 %
Fixed maturity securities were the largest component of our total investments at December 31, 2022 and December 31, 2021.  
Fixed maturity securities declined from 77% of total investments at December 31, 2021 to 71% of total investments at 
December 31, 2022.  This decline was primarily from an increase in unrealized losses on the portfolio due to increasing interest 
rates as well as from the sale of fixed maturity securities with a book value of approximately $502.0 million during 2022 as part 
of the deposit-type reinsurance transaction.  The largest categories of fixed maturity securities at December 31, 2022 consisted 
of 72% in corporate securities, 11% in municipal securities, and 5% in U.S. Treasury securities and obligations of the U.S. 
Government.  We had 26% of the fixed maturity securities in private placements at December 31, 2022 compared to 22% at 
December 31, 2021.  The use of private placements offers an enhancement to our portfolio returns by providing access to higher 
yielding securities that choose to have a more limited offering at often lower cost.
We use actual or equivalent Standard & Poor's ratings to determine the investment grading of fixed maturity securities.  Our 
fixed maturity securities that were rated investment grade were 99% at both December 31, 2022 and December 31, 2021.  
The fair value of fixed maturity securities with unrealized losses was $2.0 billion at December 31, 2022, compared with $366.6 
million one year earlier.  This increase primarily reflected higher interest rates at December 31, 2022 compared to December 
31, 2021.  At both December 31, 2022 and December 31, 2021, 99% of security investments with an unrealized loss were 
investment grade and accounted for 99% of the total unrealized losses.  
At December 31, 2022, we had $278.9 million in gross unrealized losses on fixed maturity securities that offset $8.3 million in 
gross unrealized gains. At December 31, 2021, we had $203.7 million in gross unrealized gains on fixed maturity securities that 
offset $10.4 million in gross unrealized losses.  At December 31, 2022, 11% of the fixed maturity securities portfolio had 
unrealized gains, down from 88% at December 31, 2021.  We had an increase in gross unrealized losses in all categories from 
December 31, 2021 to December 31, 2022, primarily due to changes in interest rates.  Gross unrealized losses on fixed maturity 
securities for less than 12 months totaled $194.3 million and accounted for 85% of the security values in a gross unrealized loss 
position at December 31, 2022.  Gross unrealized losses on fixed maturity securities of 12 months or longer increased from $3.5 
million at December 31, 2021 to $84.6 million at December 31, 2022.  
We have written down certain investments in previous periods.  There were no fixed maturity securities written down and still 
owned at December 31, 2022.  Fixed maturity securities written down and still owned at December 31, 2021 had a fair value of 
$11.9 million and net unrealized gains of $1.3 million.  Additional information identified or further deteriorations could result 
in impairments in future periods.
We evaluated the current status of all investments previously written down to determine whether we believe that these 
investments remained credit-impaired to the extent previously recorded.  Our evaluation process is similar to our impairment 
evaluation process.  If evidence exists that we will receive the contractual cash flows from securities previously written down, 
the accretion of income is adjusted.  We reduced the value of five investments in 2022 totaling less than $0.1 million under this 
process.  We reduced the value of one investment in 2021 by less than $0.1 million under this process.  
Investments in mortgage loans totaled $591.9 million at December 31, 2022, down from $596.0 million at December 31, 2021.  
The commercial mortgage loan portfolio decreased $4.1 million during 2022, as regularly scheduled payments and prepayments 
exceeded the volume of new loans.  Our mortgage loans are secured by commercial real estate.  These loans are stated at the 
outstanding principal balance, adjusted for amortization of premium and accrual of discount, less an allowance for loan losses.  
81

We believe this allowance is at a level adequate to absorb estimated credit losses and was $2.8 million at both December 31, 
2022 and December 31, 2021.  For additional information on our mortgage loan portfolio, please see Note 3 - Investments.
82

Liquidity and Capital Resources
Liquidity
Management believes that the Company has sufficient sources of liquidity and capital resources to satisfy operational 
requirements and to finance expansion plans and strategic initiatives as they may occur.  Primary sources of cash flow are 
premiums, other insurance considerations and deposits, receipts for policyholder accounts, investment sales and maturities, and 
investment income.  We have a spread-based investment program utilizing advances from the Federal Home Loan Bank of Des 
Moines (FHLB) to provide additional liquidity.  In addition, we have credit facilities that are available for additional working 
capital needs or investment opportunities.  The principal uses of cash are for the insurance operations, including the purchase of 
investments, payment of insurance benefits, operating expenses, policyholder dividends, withdrawals from policyholder 
accounts, and costs related to acquiring new business.  There can be no assurance that we will continue to generate cash flows 
at or above current levels or that our ability to borrow under the current credit facilities will be maintained.
We perform cash flow testing and add various levels of stress testing to potential surrender and policy loan levels in order to 
assess current and near-term cash and liquidity needs.  In the event of increased surrenders and other cash needs, we have 
several sources of cash flow available to meet our needs.
Net cash used from operating activities was $54.3 million for the year ended December 31, 2022.  The primary sources of cash 
from operating activities in 2022 were premium receipts and net investment income.  The primary uses of cash from operating 
activities in 2022 were for the payment of policyholder benefits and operating expenses.  Net cash used from investing activities 
was $89.2 million.  The primary sources of cash were sales, maturities, calls, and principal paydowns of investments totaling 
$431.0 million.  Offsetting these, investment purchases, including new mortgage loans and new policy loans, totaled $535.7 
million.  In addition, net sales of short-term investments totaled $16.0 million.  Net cash provided by financing activities was 
$145.9 million, primarily including $70.0 million of receipts from the FHLB funding agreement, $45.8 million change in 
deposit asset on reinsurance, $35.1 million of deposits, net of withdrawals, on policyholder account balances, and $7.8 million 
of net transfers from separate accounts.  Partially offsetting these was the payment of $6.7 million in stockholder dividends.  
Capital Resources
We believe existing capital resources provide adequate support for the current level of business activities, as identified in the 
following table at December 31. 
2022
2021
Total assets, excluding separate accounts
$ 
4,583,568 
$ 
4,928,454 
Total stockholders' equity
 
491,693 
 
830,434 
Ratio of stockholders' equity to assets, excluding separate accounts
11%
17%
Stockholders’ equity decreased $338.7 million from year-end 2021, primarily due to an increase in net unrealized losses, 
reflecting higher interest rates at December 31, 2022.  In addition, stockholders’ equity decreased from the recognition of the 
$28.4 million legal reserve.  Stockholders’ equity per share, or book value, equaled $50.78 at year-end 2022, a decline from 
$85.76 at year-end 2021.
Net unrealized losses on available for sale securities, which are included as part of Accumulated Other Comprehensive Income 
(Loss) and as a component of Stockholders’ Equity (net of unrealized losses on investments, related taxes, policyholder account 
balances, future policy benefits, DAC, VOBA, and DRL), totaled $195.0 million at December 31, 2022, a $308.4 million 
decrease from net unrealized gains of $113.4 million at December 31, 2021.  This decline reflected higher interest rates at 
December 31, 2022.  
In 2021, the Company entered into a collateralized advance funding agreement with the FHLB.  Total obligations outstanding 
under these agreements, which mature between 2024 and 2027, were $100.0 million at December 31, 2022 and are reported as 
Policyholder Account Balances in the Consolidated Balance Sheets.  Interest is credited based on variable rates set by the 
FHLB.  Interest payments during the year ended December 31, 2022 were $1.5 million.  Interest payments during the year 
ended December 31, 2021 were less than $0.1 million.
Our statutory equity exceeds the minimum capital deemed necessary to support our insurance business, as determined by the 
risk-based capital calculations and guidelines established by the National Association of Insurance Commissioners (NAIC).  
We believe these statutory limitations impose no practical restrictions on future dividend payment plans.  See further discussion 
in Note 19 - Statutory Information and Stockholder Dividends Restriction.
83

In January 2023, the Board of Directors authorized the purchase of up to one million of our shares on the open market through 
January 2024.  No shares were purchased under this authorization during 2022 or 2021.  The timing and amount of any share 
repurchases will be determined by our management based on market conditions and other factors. 
On January 23, 2023, the Board of Directors declared a quarterly dividend of $0.14 per share that was paid February 8, 2023 to 
stockholders of record at February 2, 2023.  
Minimum Rate Guarantees
Our rate guarantees for those products with minimum crediting rate provisions are identified in the following table.  The actual 
interest rate credited to these products may be greater than the guaranteed rates, particularly for products having been sold more 
recently and within the lower guaranteed rate categories.  Approximately 74% of total policyholder account balances were at 
the minimum guaranteed rate as of December 31, 2022 compared to 76% at December 31, 2021. 
December 31, 2022
Fixed
Annuities
Universal 
Life
Variable Life
and Annuities
Supplemental
Contracts and
Annuities 
Without Life 
Contingencies
Total
0% to 1%
$ 
423,425 
$ 
103,710 
$ 
8,398 
$ 
4,317 
$ 
539,850 
Greater than 1% to 3%
 
147,178 
 
313,236 
 
96,801 
 
31,176 
 
588,391 
Greater than 3% to 4%
 
345,550 
 
286,168 
 
7,758 
 
17,727 
 
657,203 
Greater than 4%
 
44,603 
 
347,069 
 
— 
 
3,187 
 
394,859 
Total
$ 
960,756 
$ 
1,050,183 
$ 
112,957 
$ 
56,407 
$ 
2,180,303 
December 31, 2021
Fixed
Annuities
Universal 
Life
Variable Life
and Annuities
Supplemental
Contracts and
Annuities 
Without Life 
Contingencies
Total
0% to 1%
$ 
428,959 
$ 
90,379 
$ 
7,836 
$ 
5,950 
$ 
533,124 
Greater than 1% to 3%
 
151,844 
 
313,343 
 
93,621 
 
32,837 
 
591,645 
Greater than 3% to 4%
 
367,672 
 
294,109 
 
7,560 
 
12,961 
 
682,302 
Greater than 4%
 
48,745 
 
358,402 
 
— 
 
3,151 
 
410,298 
Total
$ 
997,220 
$ 
1,056,233 
$ 
109,017 
$ 
54,899 
$ 
2,217,369 
Effective April 1, 2022, the Company reinsured a block of fixed annuity business with an average crediting rate of 3.75% to a 
certified domestic reinsurer.  The contract reinsured $516.2 million in policyholder account balance liabilities and created a 
deposit asset on reinsurance.  The above table includes those amounts on a gross basis.  The Deposit Asset on Reinsurance 
balance included in the Consolidated Balances Sheets was $484.4 million at December 31, 2022. 
Fixed Annuity Contracts
Fixed annuity contracts accumulate deposits over time with interest credited.  Deposits may be flexible or single-premium.  The 
timing and magnitude of outgoing cash flows from these contracts is dependent upon many factors, primarily due to contract 
owner rights to surrender or annuitize the policy value during the term of the contract and benefit options that are provided 
upon death.  We make estimates and projections of future cash flows on fixed annuities based upon the economic environment, 
ranges of future economic changes, and historical contract holder behavior. 
The term of the contract is dependent upon the individual needs and decisions of contract owners up to and including the time 
of contractual maturity.  The maturity of the contract is typically determined by a combination of the duration of ownership of 
the contract and the annuity owner’s age.  Deferred annuity contract owners with upcoming annuity maturities receive 
communication from us regarding the various maturity settlement options that are available in the contract.  The communication 
can result in extension of the contract maturity date, surrender of the contract prior to maturity, or conversion of the contract to 
other contract or policy types.  Conversions typically involve payment of the contract value over time and often with life 
contingencies.   
84

The following table provides fixed annuity contract values within maturity date ranges as of December 31.  The values and date 
ranges provided below do not necessarily represent our expected outflow of funds from these contracts, as these cash flows may 
be significantly impacted by the needs and decisions of the contract owners.
2022
%
of Total
2021
%
of Total
One year or less
$ 
136,864 
 14 %
$ 
135,123 
 14 %
Two years
 
80,952 
 9 %
 
102,670 
 10 %
Three years
 
42,046 
 4 %
 
44,275 
 4 %
Four years
 
53,041 
 6 %
 
48,333 
 5 %
Five years
 
71,528 
 7 %
 
56,100 
 6 %
Six years or more
 
576,325 
 60 %
 
610,719 
 61 %
Total
$ 
960,756 
 100 %
$ 
997,220 
 100 %
Fixed annuity contracts typically also contain provisions for charges to be paid by contract holders if the contract is surrendered 
within a fixed period of time after purchase.  The surrender charge typically declines on an annual basis during an initial term of 
ten or fewer years.  The magnitude of any surrender charge applicable to a contract is believed to impact policyholder behavior 
and the timing of future cash flows.  The following table provides the policy values for fixed annuities by summary ranges of 
applicable surrender charges as of December 31.
2022
%
of Total
2021
%
of Total
None
$ 
574,481 
 60 %
$ 
592,322 
 59 %
Less than 5%
 
187,150 
 19 %
 
186,471 
 19 %
5% and greater
 
199,125 
 21 %
 
218,427 
 22 %
Total
$ 
960,756 
 100 %
$ 
997,220 
 100 %
As previously mentioned, the Company reinsured a block of fixed annuity business to a certified domestic reinsurer effective 
April 1, 2022.  The contract reinsured $516.2 million in policyholder account balance liabilities and created a deposit asset on 
reinsurance.  The Deposit Asset on Reinsurance balance included in the Consolidated Balances Sheets was $484.4 million at 
December 31, 2022. 
Asset/Liability Management
Our asset/liability management programs and procedures involve the monitoring of asset and liability durations for various 
product lines, cash flow testing under various interest rate scenarios to evaluate the potential sensitivity of assets and liabilities 
to interest rate movements, and the continuous rebalancing of assets and liabilities with respect to yield, risk, and cash flow 
characteristics.
We believe our asset/liability management programs and procedures, along with certain product features, provide protection for 
us against the effects of changes in interest rates under various scenarios.
Cash flows and effective durations of the asset and liability portfolios are measured at points in time and are affected by 
changes in the level and term structure of interest rates, as well as changes in policyholder behavior.  Further, durations are 
managed on an individual product level, and an aggregate portfolio basis.  As a result, differences typically exist between the 
duration, cash flows, and yields of assets versus liabilities on an individual portfolio and aggregate basis.  Our asset/liability 
management programs and procedures enable management to monitor the changes, which have varying correlations among 
certain portfolios, and to make adjustments to asset mix, liability crediting rates, and product terms so as to manage risk and 
profitability over time.
We aggregate similar policyholder liabilities into portfolios and then match specific investments with these liability portfolios.  
In 2022 and 2021, all of our portfolios had investment yields near or in excess of crediting rates on matched liabilities.  We 
monitor the risk to portfolio investment margins on an ongoing basis.
We perform cash flow scenario testing through models of our in force business.  These models reflect specific product 
characteristics and include assumptions based on current and anticipated experience regarding the relationships between short-
term and long-term interest rates (i.e., the slope of the yield curve), credit spreads, market liquidity, and other factors, including 
85

policyholder behavior in certain market conditions.  In addition, these models include asset cash flow projections, reflecting 
interest payments, sinking fund payments, scheduled principal payments, and optional bond calls and prepayments.
The risk exists that our asset or liability portfolio performance may differ from forecasted results as a result of unforeseen 
economic circumstances, estimates or assumptions that prove incorrect, unanticipated policyholder behavior, or other factors.  
The result of such deviation of actual versus expected performance could include excess or insufficient liquidity in future 
periods.  Excess liquidity, in turn, could result in reduced profitability on one or more product lines.  Insufficient liquidity could 
result in the need to generate liquidity through borrowing, asset sales, or other means.  We believe that our asset/liability 
management programs will provide sufficient liquidity to enable us to fulfill our obligation to pay benefits under our various 
insurance and deposit contracts.  On a historical basis, we have not needed to liquidate assets to ensure sufficient cash flows.  
We maintain borrowing lines on a secured and unsecured basis to provide additional liquidity, if needed.
86

Risk Factors
The operating results of life insurance companies have historically been subject to significant fluctuations.  The factors which 
could affect our future results include, but are not limited to, general economic conditions and the known trends and 
uncertainties which are discussed more fully below.
Strategic and Operational Risks:
We operate in a mature and highly competitive industry, which could limit our ability to grow sales or maintain our position 
in the industry and negatively affect profitability.
Life insurance is a mature and highly competitive industry.  We encounter significant competition in all lines of business from 
other insurance companies, many of which may have greater financial resources, a greater market share, a broader range of 
products, lower product prices, better name recognition, greater actual or perceived financial strength, higher claims-paying 
ratings, the ability to assume a greater level of risk, lower operating or financing costs, or lower profitability expectations.
In recent years, there has been substantial consolidation and convergence among companies in the financial services industry, 
resulting in increased competition from large, well-capitalized financial services firms.  Furthermore, many of these larger 
competitors may have lower operating costs and an ability to absorb greater risk while maintaining their financial strength 
ratings, thereby allowing them to price their products more competitively. 
Changes in demographics, particularly the aging of the population, and the decline in the number of agents in the industry, may 
affect the sale of life insurance products.  Also, as technology evolves, customers and agents may be able to compare products 
of any particular company with any other, which could lead to increased competition as well as changes in agent or customer 
behavior, including persistency, that differs from past behavior.
We may be unable to attract and retain agencies and agents.
We sell insurance and annuity products through independent agents and agencies.  These agencies and agents are not captive 
and may sell products of our competitors.  Sales and our financial results could be adversely affected if we are unsuccessful in 
attracting agencies and agents.  Our ability to retain agents and agencies is dependent upon a number of factors, including: our 
ability to maintain a competitive compensation system while also offering products with competitive features and benefits for 
policyholders; our ability to maintain a level of service and assistance that effectively supports the needs of agents and agencies; 
and our ability to approve and monitor sales and business practices of agents and agencies that are consistent with regulatory 
requirements and our expectations.
Our results may be negatively affected should actual experience differ from management’s assumptions and estimates.
We make certain assumptions regarding mortality, persistency, expenses, interest rates, tax liability, business mix, policyholder 
behavior, and other factors appropriate for the type of business results we expect to experience in future periods.  These 
assumptions are also used to estimate the amounts of DAC, VOBA, DRL, policy reserves and accruals, future earnings, and 
various components of our financial statements.  These assumptions are used in the operations of our business in making 
decisions that are crucial to our success, including the pricing of products and expense structures relating to products.  Our 
actual experience and changes in estimates are reflected in our financial statements.  Our actual experience may vary from 
period to period and from established assumptions, potentially resulting in variability in the financial statements.
We establish and carry a reserve liability based on current estimates of how much will be needed to pay for future benefits and 
claims.  The assumptions and estimates used in connection with establishing and carrying reserves are inherently uncertain and 
in some cases are mandated by regulators, irrespective of a company's actual experience.  If actual experience is significantly 
different from assumptions or estimates or if regulators decide to increase or change regulations, current reserves may prove to 
be inadequate in relation to estimated future benefits and claims.  As a result, a charge to earnings would be incurred in the 
quarter in which we change reserves.
The calculations we use to estimate various components of our financial statements are complex and involve analyzing and 
interpreting large quantities of data.  We employ various techniques for such calculations and from time to time will develop 
and implement more sophisticated systems and procedures to facilitate calculations and improve estimates.  Accordingly, our 
financial results may be affected, positively or negatively, by actual results differing from assumptions, by changes in estimates, 
and by changes resulting from implementing new administrative systems and procedures.
87

We may face difficult economic conditions that could adversely affect our operations.
Market factors, including inflation, changes in interest rates, consumer spending, government actions, market volatility, 
recession, and disruptions and strength of the capital markets may result in investment losses, changes in insurance liabilities, 
impairments, increased valuation allowances, increases in reserves, reduced net investment income and changes in unrealized 
gain or loss positions. 
Inflation risk is the risk that inflation will undermine the performance of an investment, the value of an asset, or the purchasing 
power of a stream of income.  In periods of elevated inflation, the sales and persistency of insurance products may be 
negatively impacted.  In addition, the cost of various selling and general operating expenses may increase during periods of 
high inflationary pressure.
In addition, higher unemployment, lower personal income, lower corporate earnings, lower consumer spending, elevated 
incidence of claims, lapses or surrenders of policies, reduced demand for our products, and deferred or canceled payments of 
insurance premiums may negatively affect our operating results. 
Risk management policies and procedures may not be fully effective and could leave us exposed to unidentified or 
unanticipated risk, which could negatively affect business or result in losses.
We have devoted significant resources to develop risk management policies and procedures and will continue to do so in the 
future.  However, the policies and procedures that we use to identify, monitor, and manage risks may not be fully effective.  
Many of the methods of managing risk and exposure are based upon the use of observed historical policyholder and market 
behavior or statistics based on historical models.  As a result, these methods may not effectively or fully identify or evaluate the 
magnitude of existing or future exposure, which could be significantly greater than the historical measures or our evaluation 
indicate.  Other risk management methods depend upon the evaluation of information regarding markets, agents, clients, 
catastrophe occurrence, or other matters that are publicly available or otherwise accessible.  This information may not always 
be accurate, complete, up-to-date, or properly evaluated.  Management of operational, legal, and regulatory risks requires 
policies and procedures to record properly and verify a large number of transactions and events, and these policies and 
procedures may not be fully effective.  Additional risks and uncertainties not currently known or that we currently deem to be 
immaterial may adversely affect our business and/or our financial statements.
A rating downgrade could adversely affect our ability to compete and increase the number or value of policies surrendered.
Our financial strength rating, which is intended to measure our ability to meet policyholder obligations, may be an important 
consideration affecting public confidence in some of our products and, as a result, our competitiveness.  A downgrade in our 
rating could adversely affect our ability to sell products, retain existing business, and compete for attractive acquisition 
opportunities.  Rating organizations assign ratings based upon several factors.  While most of the factors relate to the rated 
company, some of the factors relate to the views of the rating organization, general economic conditions, and circumstances 
outside the rated company’s control.  We cannot predict what actions rating organizations may take or what actions we may be 
required to take in response to the actions of the rating organizations.
88

Projected operating results for acquisitions may not be achieved and the ability to integrate acquisitions and achieve 
anticipated operating efficiencies may not be successful.
Actual operating results may vary significantly from projected results of acquired companies and blocks of business.  Projected 
operating results are estimates of future results based on assumptions made by management at the time of the acquisition.  
General economic, political, and market conditions may have a material impact on the reliability of these projections.  We may 
not be able to realize the projected value of acquired assets or we may underestimate the value of the liabilities assumed.  Our 
financial position and results of operations could be negatively impacted if the projections are materially inaccurate.  This could 
result in the write-down of acquired assets, impairment to goodwill, impairment to intangible assets, increases to assumed 
liabilities, and other negative impacts to our financial statements.
We may not achieve efficient operational integration of acquisitions or may not achieve operating efficiencies that were 
projected at the time of acquisition.  Failure to achieve either or both of these could result in increased expenses and negatively 
impact our financial position and results of operations.
Reinsurance Risks:
Our reinsurers could fail to meet assumed obligations or be subject to adverse developments that could impact us.
We follow the insurance practice of reinsuring a portion of the risks under the policies we issue, known as ceding.  We cede 
significant amounts of insurance to other insurance companies through reinsurance.  This reinsurance makes the assuming 
reinsurer liable to us for the reinsured portion of the risk.  However, reinsurance does not discharge us from our primary 
obligation to pay policyholders for losses insured under the policies that are issued.  Therefore, we are subject to the credit risk 
of our reinsurers.  The failure of one or more of our reinsurers could negatively impact our financial position or financial 
statements.
Our ability to compete is dependent on the availability of reinsurance, cost of reinsurance, or other substitute capital market 
solutions.
The premium rates we charge are based, in part, on the assumption that reinsurance will be available at a certain cost.  Under 
certain reinsurance agreements, the reinsurer may increase the rate it charges us for the reinsurance.  Therefore, if the cost of 
reinsurance were to increase for existing business, if reinsurance were to become unavailable for new business, or if alternatives 
to reinsurance were not available, we may be exposed to reduced profitability and cash flow strain, or we may not be able to sell 
or price new business at competitive rates.
In recent years, the number of life reinsurers has decreased as the reinsurance industry has consolidated.  The decreased number 
of participants in the life reinsurance market results in increased concentration risk for insurers.  If the reinsurance market 
further contracts, our ability to continue to offer our products on terms favorable to us could be adversely impacted.
Investment Risks:
Our investments are subject to market, credit, and inflation risks.
We hold a diversified portfolio of investments that primarily includes fixed maturity securities, mortgage loans, and real estate.  
Each of these investments is subject, in varying degree, to market risks that can affect their return and their fair value.  
Our invested assets, primarily including fixed maturity securities, are subject to customary risks of credit defaults and changes 
in fair value.  The value of our mortgage loan and real estate portfolios also depend on the financial condition of the borrowers 
and tenants occupying the properties which we have financed.  Factors that may affect the overall default rate on and fair value 
of our invested assets include interest rate levels and changes, availability and cost of liquidity, financial market performance, 
state and federal regulations, and general economic conditions, as well as particular circumstances affecting the businesses of 
individual borrowers and tenants.
Our investments are exposed to varying degrees of credit risk.  Credit risk is the risk that the value of the investment may 
decline due to deterioration in the financial strength of the issuer and that the timely or ultimate payment of principal or interest 
might not occur.  A default by an issuer usually involves some loss of principal to the investor.  Losses can be mitigated by 
timely sales of affected securities or by active involvement in a restructuring process.  However, there can be no assurance that 
the efforts of an investor will lead to favorable outcomes in a bankruptcy or restructuring. 
We attempt to mitigate credit risk by diversifying the investment portfolio across a broad range of issuers, investment sectors 
and security types, and by limiting the amount invested in any particular entity.  We also invest in securities collateralized or 
supported by physical assets, guarantees by insurers or other providers of financial strength, and other sources of secondary or 
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contingent payment.  These securities can improve the likelihood of payment according to contractual terms and increase 
recovery amounts in the case of issuer default, bankruptcy, or restructuring.
Inflation erodes the value of fixed rate assets. When inflation increases, the value of the fixed interest payments on bonds 
decreases.  As a result, investors demand higher yields on fixed income bonds to compensate for the risk of inflation eroding 
the purchasing power of the bond's returns.  Increasing rates of inflation could lead to significant increases in unrealized losses 
on investments.
Interest rate fluctuations could negatively affect our spread income or otherwise impact our business.
Interest rate fluctuations or sustained low interest rate environments could negatively affect earnings because the profitability of 
certain products depends in part on interest rate spreads.  These products include fixed annuities, single premium immediate 
annuities, interest-sensitive whole life, universal life, and the fixed portion of variable universal life insurance and variable 
annuity business.  In addition, we offer riders, including guaranteed minimum withdrawal benefits and guaranteed minimum 
death benefits.  Changes in interest rates or sustained low interest rate environments may reduce both the profitability and the 
return on invested capital.
Some of our products, principally fixed annuities, interest-sensitive whole life, universal life, and the fixed portion of variable 
universal life insurance and variable annuity business, have interest rate guarantees that expose us to the risk that changes in 
interest rates will reduce the spread, or the difference between the amounts we are required to credit to policyholder contracts 
and the amounts earned on general account investments.  Because many of our policies have guaranteed minimum interest or 
crediting rates, spreads could decrease and potentially become negative.  Declines in spread or instances where the returns on 
the general account investments are not sufficient to support the interest rate guarantees on these products could have a material 
adverse effect on our financial statements.  In periods of declining interest rates, we may have to reinvest the cash received from 
interest or return of principal on investments in lower yielding instruments then available.  Moreover, issuers of fixed income 
investment securities and borrowers related to our commercial mortgage investments may prepay these obligations in order to 
borrow at lower market rates, which may increase our risk to have to reinvest at lower rates.  
In periods of increasing interest rates, we may not be able to replace the assets in the general account with higher yielding assets 
needed to fund the higher crediting rates that may be necessary to keep interest sensitive products competitive.  Therefore, we 
may have to accept a lower spread and profitability or face a decline in sales, loss of existing contracts from non-renewed 
maturities, early withdrawals, or surrenders.  Increases in interest rates may cause increased surrenders of insurance products.  
In periods of increasing interest rates, policy loans and surrenders and withdrawals of life insurance policies and annuity 
contracts may increase, as policyholders seek to buy products with higher returns.  These outflows may require investment 
assets to be sold at a time when the prices of those assets are lower because of the increase in market interest rates, which may 
result in realized investment losses.  Further, higher interest rates may result in significant unrealized losses on investments.  
These net unrealized losses could have a negative effect on stockholders' equity.  This could negatively impact the ability to pay 
policyholder and stockholder dividends.  In addition, higher interest rates may reduce the fair value of policyholders' separate 
account investments, which may reduce our revenues from asset-based management fees. 
While we develop and maintain asset/liability management programs and procedures designed to identify and mitigate the 
effect on spread income in rising or falling interest rate environments, no assurance can be given that changes in interest rates 
will not affect such spreads or that our evaluation of fluctuations will be correct or allow for timely modifications.  
Additionally, our asset/liability management programs incorporate assumptions about the relationship between short-term and 
long-term interest rates (i.e., the slope of the yield curve) and relationships between risk-adjusted and risk-free interest rates, 
market liquidity, and policyholder behavior in periods of changing interest rates and other factors.  The effectiveness of our 
asset/liability management programs and procedures may be negatively affected whenever actual results differ from these 
assumptions.
Prolonged periods of low interest rates can affect policyholder behavior and negatively impact earnings.
As interest rates decline, policyholders may become more likely to extend the retention or duration of fixed-rate products 
previously purchased and may seek alternatives to fixed-rate products for new purchases.  Policyholders may add premiums or 
deposits to existing policies or contracts with terms upon which we are no longer offering on new products.  Many of the 
products sold in earlier periods may have minimum guaranteed interest crediting rates or other features that are greater than 
those being offered in a low interest rate environment.  Additionally, cash flows from existing investments, including interest 
and principal payments, may be reinvested at lower interest rates relative to prior periods.  As a result, a prolonged low interest 
rate environment can result in significant changes to cash flows, lower investment income, compressed product spreads, 
reduced earnings, and statutory surplus strain.  In addition, we may change our risk profiles in regards to selecting investment 
opportunities to reduce the impact on earnings.
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The change from a low interest rate environment to an environment of increasing interest rates can affect policyholder 
behavior and negatively impact earnings.
The change from a period of low interest rates to a period of significantly higher and increasing interest rates may cause 
policyholders to surrender policies or to make early withdrawals in order to maximize their returns.  Accordingly, we may 
become more susceptible to increased surrenders and withdrawals on policies, as surrender charges and other features that help 
protect us from increased or unexpected policyholder withdrawals or lapses are ineffective.  Increases in policyholder 
surrenders, withdrawals, or lapses could negatively affect our operating results and liquidity.
Our valuation of fixed maturity and equity securities include estimations and assumptions and could result in changes to 
investment valuations that may have a material adverse effect on our financial statements.
Fixed maturity securities, equity securities, and short-term investments are reported at fair value in the Consolidated Balance 
Sheets and represent the majority of total cash and invested assets.  During periods of market disruption, including periods of 
significantly rising or high interest rates, rapidly widening credit spreads or illiquidity, it may be difficult to value certain 
securities if trading becomes less frequent and/or market data becomes less observable.  There may be certain asset classes that 
were previously acquired and valued in active markets with significant observable data that will be valued in illiquid markets 
with little observable data.  As such, valuations may include inputs and assumptions that are less observable or require greater 
estimation as well as valuation methods which are more complex or require increased estimation, thereby resulting in values 
which may have greater variance from the value at which the investments may or could be ultimately sold.  Further, rapidly 
changing credit and equity market conditions could materially impact the valuation of securities as reported in the consolidated 
financial statements, and the period to period changes in value could vary significantly.  Decreases in value could have a 
material adverse effect on our financial statements.
Equity market volatility could negatively impact our profitability.
We are exposed to risk arising from equity market volatility in the following ways:
•
We have exposure to equity price risk through investments.  
•
We earn investment management fees and mortality and expense fee income based upon the value of assets held in our 
separate accounts from both direct and reinsurance arrangements.  Revenues from these sources fluctuate with changes 
in the fair value of the separate accounts.
•
Volatility in equity markets may discourage customers from purchasing variable universal life and variable annuity 
products that have returns linked to the performance of the equity markets.  This volatility may also result in existing 
customers withdrawing cash values or reducing investments in those products.
•
We have equity price risk to the extent that it may affect the liability recognized under guaranteed minimum death 
benefits and guaranteed minimum withdrawal benefit provisions of the variable contracts.  Periods of significant and 
sustained downturns in equity markets, increased equity volatility, or reduced interest rates could result in an increase 
in the valuation of the future policy benefit or policyholder account balance liabilities associated with such products, 
which ultimately could result in a reduction to net income.
•
The amortization of DAC relating to variable products can fluctuate with changes in the performance of the underlying 
separate accounts due to the impact on estimated gross profits.
•
The Company has a defined benefit pension plan that is frozen.  Declining financial markets could have several 
impacts on this plan including but not limited to: a decrease in the plan's investment values; additional pension 
expense; a reduction in comprehensive income; and an increase in contributions.  In addition, the funding requirements 
of our pension plan are sensitive to interest rate changes.  Should interest rates decrease, plan liabilities may increase.  
Should interest rates increase, plan assets may decrease.
The determination of the amount of realized and unrealized impairments and allowances established on our investments is 
highly subjective and could materially impact our financial position or financial statements.
The determination of the amount of impairments and allowances varies by investment type and is based upon our evaluation 
and assessment of known and inherent risks associated with the respective asset class.  Such evaluations and assessments are 
revised as conditions change and new information becomes available.  There can be no assurance that the assumptions, 
methodologies, and judgments employed in these evaluations and assessments will be accurate or sufficient in later periods.  As 
a result, additional impairments may need to be realized or allowances provided in future periods.  Further, historical trends 
may not be indicative of future impairments or allowances.
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Additionally, we consider a wide range of factors about security issuers and we use our best judgment in evaluating the cause of 
the decline in the fair value of the security and in assessing the prospects for recovery.  Inherent in management’s evaluation of 
the security are assumptions and estimates about the operations of the issuer, its future earnings potential, and the ability and 
timeliness of the security’s recovery in fair value.
We could be forced to sell investments at a loss to meet policyholder withdrawals.
Many of our products allow policy and contract holders to withdraw their funds under defined circumstances.  We manage 
liabilities and attempt to align the investment portfolio so as to provide and maintain sufficient liquidity to support anticipated 
withdrawal demands, contract benefits, and maturities.  While we own a significant amount of liquid assets, a certain portion of 
our investment assets are relatively illiquid.  If we experience unanticipated withdrawal or surrender activity, we could exhaust 
other sources of liquidity and be forced to liquidate assets, possibly on unfavorable terms.  If we are forced to dispose of assets 
on unfavorable terms, it could have an adverse effect on our financial statements and financial condition.
Regulatory Risks:
Insurance companies are highly regulated and are subject to numerous legal restrictions and regulations.
We are subject to government regulation in each of the states in which we conduct business.  Such regulation is vested in state 
agencies having broad administrative and, in some instances, discretionary power dealing with many aspects of our business.  
This may include, among other things, premium rates and increases thereto, reserve requirements, marketing practices, 
advertising, privacy, policy forms, reinsurance reserve requirements, acquisitions, mergers, and capital adequacy.  Government 
regulation of insurers is concerned primarily with the protection of policyholders and other customers rather than shareholders.  
Interpretations of regulations by regulators may change, and statutes, regulations, and interpretations may be applied with 
retroactive impact, particularly in areas such as accounting or reserve requirements.
We cannot predict whether or in what manner regulatory reforms will be enacted and, if so, whether the enacted reforms will 
positively or negatively affect the Company, or whether any effects will be material.  The NAIC generally formulates and 
promulgates statutory-based insurance regulations.  However, each state is independent and must separately enact these 
financial regulations and guidelines.  As such, insurers follow the interpretations and legal approvals of their respective states of 
domicile.
Other types of regulation that could affect us include insurance company investment laws and regulations, state statutory 
accounting practices, state escheatment practices, anti-trust laws, minimum solvency requirements, state securities laws, federal 
privacy laws, insurable interest laws, federal money laundering laws, anti-terrorism laws, and federal income tax regulations.  
Further, because we own and operate real property, state, federal, and local environmental laws could affect us.  We cannot 
predict what form any future changes in these or other areas of regulation affecting the insurance industry might take or what 
effect, if any, such proposals might have on us if enacted into law.
We are also subject to various government regulations at the federal level.  As a result of economic and market conditions in 
recent years, the federal government has become increasingly more active in issuing and enforcing regulations.  The 
implementation of these legislative or regulatory requirements may make it more expensive for us to conduct business, may 
have a material adverse effect on the overall business climate, and could materially affect the profitability of the results of 
operations and financial condition of financial institutions.  We are uncertain as to all of the impacts that new legislation will 
have and cannot provide assurance that it will not adversely affect our financial statements. 
New accounting rules or changes to existing accounting rules could negatively impact our financial results.
We are required to comply with GAAP, as promulgated by the FASB.  GAAP is subject to constant review and change in an 
effort to address emerging accounting issues and develop interpretative accounting guidance on a continual basis.  The 
implementation of new accounting guidance could result in substantial costs and or changes in assumptions or estimates, which 
could negatively impact our financial statements.  Accordingly, we can give no assurance that future changes to GAAP will not 
have a negative impact on us.
In addition, we are required to comply with statutory accounting principles (SAP).  SAP and various components of SAP, such 
as statutory actuarial reserving methodology, are subject to constant review by the NAIC, NAIC task forces and committees, as 
well as state insurance departments to address emerging issues and otherwise improve or modify financial reporting.  Various 
proposals are typically pending before committees and task forces of the NAIC.  If enacted, some of these may negatively affect 
us.  The NAIC also typically works to reform state regulation in various areas, including reforms relating to life insurance 
reserves and the accounting for such reserves.  We cannot predict whether or in what manner reforms will be enacted and, if so, 
whether the enacted reforms will positively or negatively affect us.  Although states generally defer to the interpretation of the 
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insurance department of the state of domicile with regards to regulations and guidelines, neither the action of the domiciliary 
state nor action of the NAIC is binding on any other state.  Accordingly, a state could choose to follow a different 
interpretation.  We can give no assurance that future changes to SAP or components of SAP will not have a negative impact on 
us.
Litigation Risk:
Legal proceedings are unpredictable and could produce one or more unexpected outcomes that could materially and 
adversely affect our financial results.
We are, from time to time, subject to litigation and other legal proceedings in the ordinary course of business.  Some of these 
proceedings may involve matters particular to our unique business practices, the conduct of our agents, or to matters that pertain 
to general industry business practices.  Some lawsuits may seek class action status that, if granted, could expose the Company 
to potentially significant liability by virtue of the size of the putative classes.  These matters often raise difficult factual and 
legal issues and are subject to uncertainties and complexities.  The outcomes of these matters are difficult to predict, and the 
amounts or ranges of potential loss at particular stages in the proceedings are in most cases difficult or impossible to ascertain. 
Judges and juries have substantial discretion in awarding punitive and compensatory damages which creates the potential for 
material adverse judgments or awards.  Given the inherent unpredictability of litigation, there can be no assurance that any 
current or future litigation will not have a material adverse effect on the Company’s results of operations or cash flows in any 
particular reporting period.
Catastrophic Event Risk:
We are exposed to the risks of climate change, natural disasters, pandemics, terrorism, or other acts that could adversely 
affect our operations.
While we have implemented risk management and contingency plans and taken preventive measures and other precautions, no 
predictions of specific scenarios can be made nor can assurance be given that there are not scenarios that could have an adverse 
effect on us.  Climate change, a natural disaster, a pandemic, or an outbreak of an easily communicable disease could adversely 
affect the mortality or morbidity experience of us or our reinsurers.  A pandemic could also have an adverse effect on lapses 
and surrenders of existing policies, as well as sales of new policies.  In addition, a pandemic could result in large areas being 
subject to quarantine, with the result that economic activity slows or ceases.  This could adversely affect the marketing or 
administration of our business.  The possible macroeconomic effects of climate change, natural disasters, pandemics, or 
terrorism could also adversely affect our financial statements.
The COVID-19 pandemic has adversely affected our business, financial condition, and results of operations.
The COVID-19 pandemic created significant volatility, uncertainty, and disruption in economic activity and financial markets 
globally, the effects of which are still continuing.  The pandemic has increased mortality worldwide, raising the risk of 
increased mortality for our Company.  While certain outcomes have been noted from the impacts of the pandemic, the full 
extent to which the COVID-19 pandemic may impact our business, financial condition, or results of operations is uncertain and 
will continue to evolve over time.  Factors and developments impacting the Company include, but are not limited to: the 
duration, severity and spread of COVID-19 and its variants, including a resurgence of the pandemic; the effects on the U.S. and 
global economies and financial markets; the overall impact on the businesses of our customers, agents, partners, and vendors; 
the health of and effect on our workforce; and increased cybersecurity and information security risk resulting from the transition 
of our employees to a hybrid or remote work environment.  Negative financial impacts that could occur include, but are not 
limited to asset impairments, deferrals of interest and principal on certain investments, reduced investment income from lower 
available interest rates, a reduction in sales, a reduction in business retention, an increase in policyholder benefit payments, and 
fluctuations in certain operating expenses.  
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Information Technology Risk:
The failure of our cybersecurity controls, other information system security controls, or the controls of our third-party 
providers may result in the unauthorized disclosure of sensitive or confidential corporate or customer information.  Such 
failures could damage our reputation and hinder our ability to conduct business.  Further, our contingency planning and 
disaster recovery programs may be insufficient to address unanticipated events.  In addition, our reputation could be 
damaged by inaccurate presentations made in social media.
As part of the normal course of business, we use computer systems to collect, process, and retain sensitive and confidential 
corporate and customer information.  In addition, we use third-party vendors and cloud technology for storage, processing, and 
data support of certain activities.  We rely on commercial technologies and third parties to maintain the security of that 
information.  Our information systems are subject to computer viruses, malicious software code, and other unauthorized 
computer-related actions.  Preventive actions taken by the Company to reduce the risk of cyber incidents and to protect our 
information may be insufficient to prevent cyber attacks or other security breaches.  Any security breach involving the 
misappropriation, loss, or other unauthorized disclosure of confidential information could severely damage our reputation, 
expose us to an increase in the risk of litigation, disrupt our operations, incur significant technical, legal, and operating 
expenses, or otherwise harm our business. 
We are highly dependent on our ability to access our computer systems to perform the necessary business functions, such as 
processing premium payments, processing claim payments, administration of policy data, providing customer support, 
managing our investment portfolio, and conducting financial reporting and analysis.  Events such as natural disasters, 
pandemics, blackouts, computer viruses, terrorist attacks, or cyber attacks could result in system failures or outages that may 
cause our computer systems to become inaccessible to our employees and customers for an extended period of time.  Our 
disaster recovery program may be insufficient to deal with such an unanticipated event.  This could result in an adverse impact 
to our ability to conduct business functions in a timely manner and could result in a failure to maintain the security and 
confidentiality of sensitive data, including personal information of customers.  This could also damage our ability to conduct 
business, damage to our reputation, result in substantial remediation costs, and potentially subject us to regulatory sanctions, 
legal claims, or other unidentified consequences.  
While we have limited social media content, we recognize that social media outlets are independent of us and our security 
measures.  Inaccurate presentations based upon incorrect information or assumptions could be distributed via social media 
outlets and could harm us and our reputation.
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