Kansas City Life life insurance

Overview

Kansas City Life Insurance Company is a mid-sized life insurer based in Kansas City, Missouri, that has been run by the same family for more than a century. It sells individual life insurance and annuities through general agencies in 49 states and Washington, D.C., along with group benefits for small and mid-sized employers. Its subsidiary Old American Insurance Company sells final expense coverage to seniors, and Grange Life Insurance Company, based in Columbus, Ohio, holds a smaller block of business.

The Kansas City Life group ranked #67 among U.S. life insurance groups by 2024 individual life direct premiums written, according to NAIC market share data, with $314.7 million in premiums and a 0.20% share. The company says its agency force of more than 2,500 serves more than half a million policyholders, supported by more than 400 home office staff.

Kansas City Life is a stockholder-owned company whose shares trade over the counter (OTCQX: KCLI). Members of the Bixby family have served as president since 1904, when J.B. Reynolds, the great-grandfather of the current generation, took the post. Walter E. "Web" Bixby is president and CEO; his brother R. Philip Bixby is chairman.

History

The company was chartered as Bankers Life Association on May 1, 1895, by Major William Warner (its first president), J.H. North and S.E. Rumble, who conceived of a life insurer in the "heart of America." It adopted the Kansas City Life Insurance Company name in 1900 and moved into its Broadway home office, built for $1 million, in 1924.

The Bixby family took the lead in 1939, when Walter E. "Ed" Bixby became president. His son J.R. Bixby followed in 1964, then Walter E. "Walt" Bixby in 1990, R. Philip Bixby in 1998 and Walter E. "Web" Bixby in 2022.

Acquisitions shaped the group:

• 1974: bought Sunset Life Insurance Company of America, later sold on November 1, 2021.
• 1991: acquired Old American Insurance Company, a final expense insurer for the senior market.
• 2003: acquired GuideOne Life Insurance Company.
• 2018: acquired Grange Life Insurance Company of Columbus, Ohio. AM Best said in December 2025 that Grange Life has operated as a closed block since 2020; it does business in 15 states.

Kansas City Life also owns Sunset Financial Services, a broker-dealer that distributes its Century II variable products.

Life insurance products

Kansas City Life sells a broad, agent-driven line. It does not publish rates, face-amount limits or no-exam programs on its website; a licensed agent quotes and designs each policy.

• Term life: level-premium term for temporary needs such as a mortgage or children's education. After the level period, you can keep the policy at a higher premium or apply for new coverage, and you can convert to permanent coverage.
• Return of premium term: the Cashback Life series, in 20- and 30-year versions, returns eligible premiums if you outlive the level term. It builds cash value and can be converted without proof of insurability. As with any return of premium term policy, the premium is well above plain term.
• Whole life: guaranteed premiums, a guaranteed death benefit and guaranteed cash values.
• Universal life: flexible premiums and adjustable coverage, with interest credited monthly above a guaranteed minimum.
• Indexed universal life: an IUL with four S&P 500-linked indexed accounts on 12-month segments: a capped account, a participation-rate account, a higher-cap account with an indexed account charge of up to 1%, and a cap-with-multiplier account with a charge of up to 4%.
• Variable universal life: the Century II series, sold through Sunset Financial Services.
• Final expense: Old American sells final expense life insurance for funeral and final arrangements, along with income-replacement and charitable-giving coverage, mainly to people ages 50 to 85.

The company says "many optional riders" are available but does not list them online.

Other products

Kansas City Life sells fixed and variable annuities. Its group division offers life, dental, vision, and short- and long-term disability coverage for employers with as few as two employees, including voluntary plans through its ABACUS series.

Buying and service

You buy through a Kansas City Life general agency. The website's agency finder locates one near you, and there is no online application. Policyholders can register for Customer Self-Service on kclife.com to view and change policies. Customer service is at 800-821-6164, or by mail to P.O. Box 219139, Kansas City, MO 64121-9139; the contact page also has an email form for general questions, policy changes and claims. Old American policyholders can call 800-733-6242.

Claims

Kansas City Life does not publish a separate death claims number. Beneficiaries can call 800-821-6164, use the "Policy Claims" option on the website's contact form, or write to the P.O. Box above, with the policy number, the insured's date of death and a certified death certificate. The claims guide covers the general process.

Ratings and reputation

On December 4, 2025, AM Best affirmed Kansas City Life's financial strength rating of A- (Excellent) but revised the outlook to negative from stable. It cited the group's pending litigation over cost-of-insurance charges on universal life policies and whether the company's risk-mitigation steps would ease pressure on capital. At the same time, AM Best downgraded Grange Life to B+ (Good) from B++ and affirmed Old American at B++ (Good), with a negative outlook on Old American's issuer credit rating. The company's own ratings page, dated December 2025, lists the A- rating but describes the outlook as stable. Kansas City Life does not list ratings from S&P, Moody's or Fitch.

The litigation is the company's biggest recent issue. Policyholders sued, arguing Kansas City Life overcharged for cost of insurance on older universal life and variable universal life policies. Plaintiffs won three jury verdicts, including Karr, which grew to more than $48 million with interest after appeal, plus the Meek and Sheldon cases. In June 2025 the company announced a $45 million settlement covering about 88,000 owners of policies such as Better Life Plan, Century II, Performer and Competitor that were in force on or after January 1, 2002. The settlement would end five class actions, required court approval and was made without admitting wrongdoing. The accrual produced a $28.7 million net loss in the second quarter of 2025. The company returned to profit in 2026, reporting net income of $17.3 million for the first half of the year. The cost-of-insurance lawsuits guide explains these cases.

Kansas City Life was not ranked in the J.D. Power 2026 U.S. Individual Life Insurance Study.

Who it suits

Kansas City Life suits families and small business owners who want a full menu of term, whole, universal and indexed life from a long-established company, bought through an independent local agency. Old American is an option for seniors who want small final expense policies. It suits fewer people who want to buy online or see published rates, or who weigh financial strength heavily, since its ratings are lower than those of many larger carriers.

• Strengths: more than 130 years in business with stable family leadership; a wide product line including IUL, VUL, return of premium term and annuities; group benefits for very small employers; final expense through Old American.
• Weaknesses: AM Best rating of A- with a negative outlook since December 2025; $45 million cost-of-insurance settlement and earlier jury verdicts over universal life charges; no online quotes, rates or rider details; Grange Life downgraded to B+ and running off as a closed block.

How to contact Kansas City Life