Kansas City Life Insurance $40M Class Action Settlement

Individuals who owned or previously owned a flexible premium adjustable life insurance policy from Kansas City Life Insurance Co. that was active on or after Jan. 1, 2002, may qualify to receive a payment from a class action settlement.

Kansas City Life Insurance Co. has agreed to pay $40 million to resolve a class action lawsuit alleging that it improperly calculated and deducted cost of insurance (COI) charges from certain life insurance policies.

Who is eligible for a settlement payout?

The class includes all individuals and entities who own or previously owned one of approximately 88,000 flexible premium adjustable life insurance policies issued by Kansas City Life Insurance Co. (KCL) that were active on or after Jan. 1, 2002.

A policy includes all applications, schedules, riders, and forms that were part of the policy at issuance, plus any riders and amendments added later. If a policyholder is deceased, their estate is considered a class member.

The following policy types are included in the settlement:

• Better Life Plan
• Better Life Plan Qualified
• LifeTrack
• AGP
• MGP
• PGP
• Chapter One
• Classic
• Century II (except those issued in Missouri)
• 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
• Ultra 20 (96)

How much is the class action payment?

Pro rata cash payment: Class members will receive a cash payment from the net settlement fund based on the total amount of cost of insurance charges paid on their policy in proportion to the total charges paid by all class members, according to the court-approved distribution plan.

No claim form required

A claim form is not required to receive a payment. Eligible class members will automatically receive a check at the address on file with Kansas City Life Insurance Co.

Class members should contact the settlement administrator with any change of address information.

Payout options

Class members will receive a check mailed to the address on file.

$40 Million class action settlement fund

The settlement fund of $40,000,000 will include:

• Settlement administration costs: To be determined
• Attorneys’ fees: $13,330,000
• Attorneys’ expenses: Not to exceed $1,175,000
• Service awards to the lead plaintiffs: Up to $25,000 each for four plaintiffs, $100,000 total
• Payments to eligible class members: Remaining settlement funds

Important dates

• Exclusion request deadline: Oct. 27, 2025
• Fairness hearing: Dec. 12, 2025

When is the Kansas City Life Insurance Co. cost of insurance settlement payout date?

Settlement checks will be mailed approximately 60 days after the court grants final approval of the settlement.

Why did this class action settlement happen?

This class action lawsuit alleged that Kansas City Life Insurance Co. made cost of insurance deductions from policy values in ways that were inconsistent with the policy language. Specifically, plaintiffs claimed that KCL:

• Used unauthorized non-mortality factors to determine COI rates
• Failed to reduce COI rates when mortality expectations improved
• Included expenses in COI calculations that should have been separate

KCL denied any wrongdoing but agreed to settle to avoid the risks and expense of further litigation and the possibility of a trial.

Sources

1. Class notice
2. Settlement website FAQ page
3. Settlement agreement